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Companies
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2007-01-03 19:49:06-05
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GE completes $626 mln Thailand's BAY stake deal
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Bangkok, Jan 4 - Thailand's Bank of Ayudhya PCL (BAY.BK: Quote, Profile , Research) (BAY) said on Thursday a unit of General Electric (GE.N: Quote, Profile , Research) had completed its 22.3 billion baht ($626.4 million) purchase of a 25.4 percent stake in the bank. Thailand's sixth largest bank told the exchange GE Capital International Holdings Corporation completed the payment for 1.39 billion shares at 16 baht each Wednesday, reports Reuters. The deal, delayed from October due to Thailand's Sept. 19 coup, is part of efforts by the U.S. company's financial arm to expand retail lending in Thailand while the Thai bank wanted a strategic partner to help it in the competitive domestic market. The mid-sized Thai bank said its registered paid-up capital had increased to 47.9 billion baht and the GE Thai unit, GE Money Bank, had transferred loans worth about 2.06 billion baht to BAY. GE Money Bank operates retail financial services with more than 3 million customers in Thailand and will have to give up its retail banking licence. GE and BAY, which have been partners in a credit card and consumer-lending joint venture since 2001, also agreed to set up a new car leasing company and BAY would close and delist its Ayudhya Auto Lease PCL (AYAL.BK: Quote, Profile , Research) subsidiary, the Thai bank said. BAY, with 684 billion baht in assets and 443 billion baht in loans, is 31 percent owned by the Ratanarak family, a bank official said. At 0426 GMT, BAY shares were down 1.7 percent at 17.30 baht and Ayudhya Auto Lease shares were 14 percent higher, while the Thai main index <.SETI> was down 0.14 percent.
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