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RETAIL BANKING | Cesar Tordesillas, Thailand
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GE sells 7.6% stake at Thailand's Bank of Ayudhya

GE raised about $462 million through sales of its 7.6% stake in Thailand's Bank of Ayudhya to institutional investors for 14.65 billion baht.

Including brokerage fees, the shares were sold at 31.46 baht each.

A total of 468.135 million shares were sold for the total sum of 14.65 billion baht.

GE Capital is reviewing options for its remaining 25%, the company said in an e-mailed statement on Wednesday.

GE Group also advised that it will not sell further shares in the bank for a period of 180 days except for any strategic sale of substantially all of GE Group's shares in the bank or as may be agreed with Morgan Stanley.

Shares of the Thai lender are headed for their biggest loss in a year following the sale, which valued the shares at a 5.4% discount to Tuesday's closing price at 33.25 baht apiece.

Bank of Ayudhya share prices dropped as much as 8.3%, heading for their biggest decline since Sept 26, 2011, before trading down 7.5% to close at 30.75 baht, or a drop by 2.50 baht, in total trade of 9.46 billion baht.

Potential buyers include Maybank. The acquirers of the stake were not disclosed on Wednesday.

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