Bangkok--7 Mar--BankThai
Phirasilp Subhapholsiri, President of BankThai Pcl announces that it has reached an agreement with Newbridge Asia IV, L.P (“TPGN”) with respect to the subscription price for new shares of the Bank. The Board of Directors has approved the offer of 556,225,048 new shares to TPGN at a subscription price of Baht 4.17, which represents a multiple of 1.35X the book value of the bank. An additional 175,225,147 new shares will be offered to other investors. Total proceeds of this offering will be Baht 3,050,147,309.
Following this transaction, the Financial Institution Development Fund ("FIDF") will continue to be the largest shareholder of the bank with a 32.89% shareholding while TPGN will own a 24.99% stake.
FIDF was established on November 27th, 1985 through the enactment of an Emergency Decree regulating the Affairs of the Bank of Thailand. It is a separate juristic entity from the Bank of Thailand. The objective of FIDF is to relax BOT's limitation in implementing financial-support measures for rehabilitation and development of the financial institutions to maintain stability in the Thai financial system. FIDF has been specifically endorsed by BOT to support distressed financial institution in broader scope.
TPGN is a leading global private investment firm with over US $ 30 billion of capital under management. TPGN invests in companies across a broad range of industries and geographies and the group's goal is to help management teams build long-term value that benefits all stakeholders. The Group is one of the most active investors in the financial industry in Asia, having made investments in leading banks in Korea, Taiwan and China.
Phirasilp Subhapholsiri, President of BankThai, says "BankThai is pleased to have found an ideal partner in TPG, who we think will assist us tremendously in achieving our long term goal of becoming a strong independent Thai bank."
Weijian Shan, Managing Director of Texas Pacific Group says “Our investment in BankThai reflects our confidence in the potential of the Thai economy and in this bank and TPG plans to grow this bank aggressively.”