Scotiabank's Thai Affiliate to Acquire Stake in Siam City Bank

Scotiabank announced that its 49%-owned affiliate, Thanachart Bank, has reached an agreement to acquire almost 48% of Thailand’s Siam City Bank. The agreement is subject to regulatory approvals in Thailand. The stake in Siam City Bank is currently owned by Thailand’s Central Bank through the Financial Institutions Development Fund. Upon closing of the 48% stake sale, Thanachart Bank will launch a tender offer for the remaining shares in Siam City Bank. Subsequent to completion of the tender offer and any additional regulatory approvals, Thanachart Bank and Siam City Bank would be merged. Scotiabank would continue to own 49% of the merged bank, to be known as Thanachart Bank, with Thanachart Capital Pcl owning almost all of the remaining 51%. As part of the financing for this transaction, Scotiabank and Thanachart Capital would subscribe on a pro rata basis to additional shares in Thanachart Bank with Scotiabank contributing approximately C$650 million in capital to the bank.