Bangkok--15 Feb--Bank of Ayudhya
The acquisition grows Bank of Ayudhya’s loan portfolio by 18% and enables it to become a leader in the auto hire purchase business in Thailand
Following the successful execution of a share purchase agreement on 31January 2008, Bank of Ayudhya Public Company Limited (BAY) today announced that it has completed its 100% acquisition of GE Capital Auto Lease Public Company Limited (GECAL), a wholly-owned subsidiary of General Electric Capital Asia Investments, Inc. The value of the transaction is THB16.18 billion, and resulted in THB80.3 billion assets being transferred to BAY.
GECAL is the second largest auto financial solutions provider in Thailand, with total assets of THB80.3 billion and loan portfolio of THB79.3 billion. The purchase of GECAL by BAY consolidates the strengths of both companies providing Thai consumers with access to a full range of financial solutions. The acquisition immediately grows BAY's loan portfolio by 18%.
Mr. Tan Kong Khoon, President and Chief Executive Officer, Bank of Ayudhya PCL., said, “We are pleased to complete this transaction, as it enables BAY to participate in the growth potential of the auto finance business in Thailand. With a higher net interest margin (NIM) of GECAL business above NIM of BAY, this is expected to help lift BAY’s overall NIM. Our range of consumer financial solutions will also be enriched by GECAL’s innovative products, enabling us to offer one-stop financial services to our customers. At the same time, customers will benefit from a much easier access to the services through BAY’s larger branch network of about 570 nationwide. This will further accelerate the growth of our consumer banking business and strengthen our leading position in Thailand’s banking sector, bringing us closer to achieving our vision to become Thailand’s most admired universal bank.”
GE Money Thailand President, Mr. Piriyah Wisedjinda said, "The full potential of GECAL will be unleashed by the integration with BAY, fully leveraging BAY’s strong distribution. After this transaction, GE Money Thailand will continue to focus on our ‘super-growth’ model, a strategic plan for expansion through organically growing our core consumer finance business including credit cards and personal loans, developing more strategic partnerships in key segments and exploring further synergies with BAY."
On 3 January 2007, GE Money completed a strategic investment in the Bank of Ayudhya. GE Money currently holds 34.7 percent stake in the bank.
ABOUT BANK OF AYUDHYA PCL.
Bank of Ayudhya Public Company Limited [symbol in SET: BAY
], established on January 27, 1945, is the fifth largest commercial bank in terms of total assets in Thailand. BAY provides a full range of banking services to both its commercial and individual customers through 567 branches nationwide. On January 3, 2007, BAY and GE Money, a premier global consumer financial services firm, have successfully become strategic partners when GE Money took a 25.4% equity stake (fully diluted) in the Bank and subsequently increased its stake to 33% on July 2, 2007, and 35% on September 18, 2007. Plans are underway to leverage the synergies of both BAY and GE Money in helping to achieve BAY’s vision to become the most admired universal bank in Thailand. To learn more about us, please visit our web site at www.krungsri.com
ABOUT GE MONEY
With more than $200 billion in assets, GE Money, a unit of General Electric Company (NYSE:GE), is a leading provider of retail; banking and credit services to consumers, retailers and auto dealers in 55 countries around the world. With more than 130 million global customers, GE Money, headquartered in London, UK offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans, and credit insurance. More information can be found at http://global.gemoney.com.
ABOUT GE
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, and media content, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
For media inquiries please contact:
Bank of Ayudhya
Mrs. Yaowalak Poolthong
Head of Corporate Communications & Investor Relations
Tel: 02 296 3729-30
E-mail: pyawalak@krungsri.com
GE Money - Thailand
Duke Theerathada
Tel: +662 627 4102
Email: Paradai.Theerathada@ge.com
GE Money - Asia
Jin Montesano
Tel: +65 6506 6412 or +852 9184 2857
Email: Jin.Montesano@ge.com