BANGKOK--Aug 1--Burson-Marsteller
BANGKOK, July 31, 1997-ABN AMRO Hoare Govett Asia (Holdings) Ltd. (AAHGA') today announced that it has accepted tenders for 46 million shares, or 35% of the total shares of Asia Securities Trading ('AST'). At 35 baht per AST share, the transaction is valued at 1.6 billion baht (approximately US$52 million).
AAHGA's final offer to acquire between 35% and 49% of AST's shares expired on July 28th. Shaareholders who tenderedd their shares will receive payment on july 31st.
Mr. David Roberts, Managing Director of AAHGA said: "We are delighted that our offer has been successful, and we are now looking forward to forging an even closer working relationship than we already have with the management and staff of AST.
"We will work together with AST to intergrate our staff with theirs at the AST office in Sathorn City Tower, and it is our intention to appoint AAHGGA representatives to the AST board".
Khun Chali Sophopanich, AST Chief Executive said: "We are looking forward to welcoming George Morgan and his AAHGA colleagues to the board of AST, and to working closely together in building the company".
"We do not foresee any major changes as we have been working together since 1991 and possess highly complementary strenggths and so do not need to restructure our business.
"Over time we do plan to add to the range of services we currently provide to clients including offering sophisticated financial instruments as well as enhanced capabilities in corporate finance".
ABN AMRO Hoare Govett pays 1.6 billion baht to acquire 35% of Asia Securities Trading
Mr. George Morgan, who will be on of AAGHA's representatives on AST's board, said : "We are confident that after six years of cooperation we know AST well enough to forge a highly successful joint venture. AST has a large market share of local retail and domestic institutional business combined with a strong investment banking presence backed up by efficient back office and IT systems.
"ABN AMRO Hoare Govett Asia has been doing research here through a representative office since 1989 and has built up a strong reputation for quality Thai equities analysis with our global client base.
"Both businesses complement each other perfectly, and we are confident that the sum of the parts will become a powerhouse in the local market'.
ABN AMRO Hoare Govett Asia Holdings
ABN AMRO Hoare Govett Asia, formerly HG Asia, is one of the most highly regarded securities houses specializing in the markets of Asia. It has had a presence in the region since 1972, and currently has offices worldwide in 21 cities, with direct access to 13 stock exchanges.
London stockbroker lloare Govett established an office in Hong Kong in 1972, and in 1992, the company was bought by its employees in partnership with the Guoco/Hong Leong Group when it was renamed HG Asia Limited.
In the same year, Hoare Govett (UK) was bought by ABN AMRO Bank, and two years later ABN AMRO Bank also acquired a stake in HG Asia. In April 1995 this shareholding was increased to 60% and later to 70% with Guoco retaining 30%. In January 1996 a new merchant banking arm was established, which is now known as ABN AMRO Hoare Govett Asia Corporate Finance Limited.
Measured by Tiber One Capital, ABN AMRO Bank is the world's 8th largest bnak. The Bank has assets in excess of US$341 billion (Baht 10,912 billion). The combination of ABN AMRO Bank's exceptionally strong balance sheet and AAHGA"s local market knowledge and international placing power maks the company one of the strongest securities houses in the region.
ABN AMPRO Hoare Govett pays 1.6 billion baht to acquire 35% of Asia Securities Tradingof Asia Securities Trading-Page3
The company prides itself on its commitment to research excellence. ABN AMRO HG Asia's team of 100 analysts throughout Asia generates reports on individual countries, on sectoral trends (both in each country and pan-Asia) and on all major companies. These reports form the basis of the recommendations made by its sales teams around the world.
ABN AMRO HG Asia is represented in the following cities : Hong Kong, Singapore, Kuala Lumpur, Bangkok, Jakarta, Shanghai, Shenzhen, Seoul, Taipei, Manila, Bombay, Lahore, Karachi, Port St.Louis, Colombo, New York, Londond, Paris, Sydney, Tokyo, and San Francisco.
In addition, the company has seats on the following stock exchanges : Shanghai, Shenzhen, Hong Kong, Manila, Jakarta, Bombay, Colombo, Karachi, Lahore, Mauritius, and London.
The ABN AMRO Group is also active in Thailand throught its fully licensed banking branch operations which commenced in 1994 and employs more than 100 people.
Asia Securities Trading Public Company Limited
AST was incroporated in 1974 by the Sophonpanich family, significant shareholders in Bangkok Bank ("BBL").
Current major shareholders include BBL and related companies, holding approximately 40%. AST, appointed as broker no. 8 in 1987, has four securities licenses : brokerage, trading, underwriting and investment advisory.
As of June 1997 the company reported total assets (unaudited) of Baht 5.8 billion, a stock broking market share of 5.64% and ranked third amongst Thai brokers.
The firm employs 315 and is managed by a professional and experienced team led by Mr.Chali Sophonpanich as Chairman and Chief Executive Officer.
Guoco Group
Guoco Group, with a 30% shareholding in AAHGA, was listed on the Stock Exchange of Hong Kong in 1991 and has a market capitalization of US$ 2 billion (Baht 64 billion).
The Group's principal activities include commercial and retail banking ; stock, commodity and bullion broking ; insurancee ; fund management ; property development, investment and management ; manufacturing and international trade.
Guoco is a member of the Hong Leong Group of companies whose chairman is Quek Leng Chan of Malasia. End