Scotiabank in Memo to Reduce Thailand Investment
26 February 2019 - 11:21PM
Dow Jones News
By Colin Kellaher
Bank of Nova Scotia (BNS.T, BNS) on Tuesday said it has signed a
non-binding memorandum of understanding for a potential deal that
would significantly reduce its investment in Thailand.
The Toronto-based bank said the memo, with ING Groep N.V.
(INGA.AE), Thanachart Capital PCL (TCAP.TH), Thanachart Bank PCL
and TMB Bank PCL (TMB.TH) involves the proposed merger of
Thanachart Bank and TMB.
Scotiabank said the contemplated transactions are complex, but
said they would result in the company holding a significantly
smaller stake in the combined bank and receiving proceeds that
would result in a gain and a roughly 25-basis-point boost to its
common equity Tier 1 capital.
The Bangkok Post this week reported that TMB Bank and Thanachart
Bank are moving closer to a merger, but that it will take another
three to four months to map out the details.
Thailand's finance ministry holds a 25.9% stake in TMB while ING
has a 25% stake, according to the report, while Thanachart Capital
holds a 51% stake in Thanachart Bank and Scotiabank owns the
rest.
Scotiabank recently announced deals to sell its operations in
nine Caribbean countries, as well as its banking and insurance
operations in El Salvador, as it moves to focus on its core
markets.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
February 26, 2019 07:06 ET (12:06 GMT)
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