Bank of Ayudhya close to acquiring GE Money Thailand
Bank of Ayudhya has reached an in-principle agreement with GE Capital for the purchase of GE Money Thailand. The proposed transaction is subject to various regulatory, corporate and shareholder approvals, as well as the completion of a definitive agreement. If closed, the transaction would represent an investment of approximately Baht 13.75 billion or approximately US$391 million subject to closing adjustment.
"The prospective purchase of GE Money, one of the largest consumer finance businesses in Thailand, is an innovative move forward. It will leverage the BAY-GE synergies and at the same time, enhance BAY’s competitiveness and economies of scale. This will be another key milestone indicating the strength of our partnership and further reflects GE Capital’s commitment in BAY," said Mr.Veraphan Teepsuwan, BAY Chairman.
Mr. Dmitri Stockton, President and CEO of GE Capital Global Banking said, "We have enjoyed a strong and productive relationship with our colleagues at BAY, and this transaction meets our corporate objectives of building scale and leveraging the strength of our partnerships in key emerging markets. Bringing these two successful organisations together will allow us to maximize value for our shareholders and strengthen our ability to serve customers."
GE Capital has a strategic investment in BAY and holds a 33 percent stake in the bank. The move would further enhance GE Capital’s participation in the bank and enable BAY to build on its strong platform and execute its growth plans.