Country's two smallest banks mull over a merger
Article Abstract:
Union Bank of Bangkok PCL is having merger negotiations with Laem Thong Bank PCL, but no agreement has been reached after three weeks of talks. The two banks' combined assets amount to 123 billion baht, or $3 billion, corresponding to only 2% of the total assets of the banking sector. Their combined market capitalization amounts to 1.6 billion baht, just a little higher than 1% of the total market capitalization of the Stock Exchange of Thailand. An analyst said that banks band together because they need to help one another, considering that foreign partners are hard to find. The same analyst also said that banks may also believe a merger will improve their clout with the government since the latter will not allow a large bank to fail.
Comment:
Is having merger negotiations with Union Bank of Bangkok, but no agreement has been reached after three weeks of talks
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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Country's two smallest banks mull over a merger: talks signal an increasing desperation of some banks, but problem loans may defeat such deals
Article Abstract:
Thailand's banking industry is headed for consolidation as a number of small banks are negotiating mergers among themselves, a move seen by analysts as futile due to the bad loans held by small banks. One such example is the merger between Union Bank of Bangkok PCL and Laem Thong Bank PCL, whose three-week of merger talks show no sign of completion. Analyst believe that a merger between Union Bank and Laem Thong is not possible since Union Bank's non performing loans amount to 25% of its total loans, equivalent to 60 mil baht and Laem Thong's non performing loans amount to 28% to 30% of its total loans, equivalent to 9.6 bil baht and 9.8 bil baht. Combined, the assets of both banks only amount to 123 bil baht.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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Creditors get court results
Article Abstract:
Industrial Bank of Japan Ltd. and Deutsche Bank AG have won the suit they filed against Chrysler Corp.'s Thai affiliate, Thai Chrysler Automotive Ltd. The two banks sued Thai Chrysler in May 1998 following the latter's failure to pay a $40 million syndicated revolving credit facility from 10 creditors, which includes the two banks. According to the verdict issued by The Central Intellectual Property and International Trade Court, Thai Chrysler will have to repay around $8 million of loans received from the two banks.
Comment:
Along w/ Industrial Bank of Japan Ltd, wins suit filed against Chrysler Corp's Thai affiliate, Thai Chrysler Automotive Ltd
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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