Krungthai Card Public Company Limited completed the acquisition of 75.1% in KTB Leasing Co., Ltd. from Krung Thai Bank Public Company Limited
May 20, 2021
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Krungthai Card Public Company Limited (SET:KTC) entered into an agreement to acquire 75.1% in KTB Leasing Co., Ltd. from Krung Thai Bank Public Company Limited (SET:KTB) for approximately THB 600 million on February 10, 2021. As per terms, 75.1 million shares will be acquired at THB 7.92 per share. Half of the consideration will be paid on closing and balance in November 2021. The offer per share is subject to adjustments and the highest price will not reach THB 13.15 per share. Post completion, Krung Thai Bank Public Company Limited will hold 25% stake in Krung Thai. The consideration will be financed from operating cash flows. The Board of Krungthai Card Public Company Limited, Ministry of Finance, SEC and Thailand Stock Exchange approved the resolution. The deal is subject to approval from shareholders of Krungthai Card Public Company and approval from Bank of Thailand. As of May 21, 2021 Krungthai Card Public Company Limited (SET:KTC) shareholder's and Bank of Thailand approved the deal. The conditions and the transaction are expected to be completed within April 2021. Silom Advisory Company Limited acted as financial advisor for Krungthai Card Public Company Limited.
Krungthai Card Public Company Limited (SET:KTC) completed the acquisition of 75.1% in KTB Leasing Co., Ltd. from Krung Thai Bank Public Company Limited (SET:KTB) on May 21, 2021. Krungthai Card Public Company Limited (SET:KTC) paid approximately THB 300 million and remaining will be paid in November 2021. As of November 29, 2021, adjustment for the buying share price was done according to the conditions on the adjustment of the agreed buying share price as specified in the Share Purchase Agreement at the price of THB 7.35 per share (rounded up), and the company has paid for the remaining buying share price to Krungthai Bank, totaling THB 254 million.
Krungthai Card Public Company Limited is a Thailand-based company, which is engaged in credit card, personal loan, and other related businesses. The Company operates a credit card business as its main business, including credit card related business, merchant acquiring business, payment service, as well as a personal loan business, which includes personal loan business under supervision and auto title loan. The Company also offers a range of financial products covering provincial retail lending business, occupational retail lending business, e-money business, hire purchase and leasing business, as well as holding business. Its credit card business consists of two components: card issuing and merchant acquiring businesses. The Company offers various types of credit cards, such as Generic Credit Card, Co-Branded Card, Affinity Credit Card, Government Services Credit Card, and Corporate Credit Card. Its services include payment of goods and services in lieu of cash and cash advance.