Bangkok--6 Feb--Bank of Ayudhya
Bank of Ayudhya Public Company Limited (BAY) and American International Group, Inc. (AIG) announced an agreement under which BAY will acquire AIG Retail Bank Public Company Limited and AIG Card (Thailand) Company Limited. The transaction, subject to the approval of the Bank of Thailand and BAY’s shareholders, is expected to be completed in April 2009.
Under the terms of the agreement, BAY will acquire 99.5% of shares of AIG Retail Bank and 100% of AIG Card (Thailand) for a total consideration of Baht 2.055 billion (subject to closing valuation adjustments).
The combined assets of the two companies are expected to increase BAY’s asset by approximately Baht 32 billion which brings its current assets from 745 billion to 777 billion Baht and the transaction will increase BAY’s retail loans by 14% and approximate 222,000 credit cards in force.
Mr. Tan Kong Khoon, President and Chief Executive Officer, Bank of Ayudhya PCL., said, “We are pleased with this opportunity. The acquisition of AIG Retail Bank and AIG Card Thailand emphasizes Bank of Ayudhya’s strategy in its inorganic growth plan, with search for new acquisitions continuing unabated. This transaction is another step forward in accelerating the Bank’s consumer banking business after the GECAL acquisition in 2008. The transaction will add 14% to our retail portfolio bringing BAY’s retail loan portion to 36%. This acquisition will strengthen our leading position in Thailand’s banking sector. At the same time, customers of AIG Retail Bank and AIG Card will benefit from an easy access to one-stop financial services and a wide range of consumer financial solutions offered by BAY.”
AIG Retail Bank President and CEO Charly Madan said, “AIG Retail Bank is an institution of the highest quality. We believe this outcome serves the best interests of both companies, as well as our valued customers, who we are confident will benefit from Bank of Ayudhya’s financial strength, comprehensive distribution network and extended product lines. We are committed to continue providing excellent services to our customers during the transition period and we are thankful for their confidence and support.”
Blackstone Advisory Services provided financial advice to AIG in connection with AIG’s global restructuring program. Deutsche Bank acted as financial advisor and Linklaters served as legal counsel to AIG on this transaction.
Phatra Securities acted as financial advisor and Allen & Overy (Thailand) served as legal counsel to Bank of Ayudhya on this transaction.
ABOUT BANK OF AYUDHYA PUBLIC COMPANY LIMITED
Bank of Ayudhya Public Company Limited [symbol in SET: BAY], established on January 27, 1945, is the fifth largest commercial bank in Thailand with total assets of Baht 745 billion. BAY provides a full range of banking services to both its commercial and individual customers through 580 branches nationwide. On 3 January 2007, BAY and GE Money, a premiere global consumer financial services firm, have successfully become strategic partners. GE Money and Ratanarak Group are now major shareholders with 33% and 25% stake in BAY respectively. BAY’s vision is to become the most admired universal bank in Thailand. For more information, please visit Bank of Ayudhya website, www.krungsri.com.
ABOUT AIG RETAIL BANK PUBLIC CO. LTD. AND AIG CARD (THAILAND) CO.LTD.
AIG Retail Bank and AIG Card (Thailand) are subsidiaries of American International Group, Inc. ("AIG"), a world leader in insurance with operations in more than 130 countries and jurisdictions. AIG Retail Bank has been operating in Thailand as a Retail Bank since March 6, 2007. The bank, which has its head office in Bangkok and 10 branches across Thailand, offers a variety of financial products and services including auto hire purchase and deposits. As of December 31, 2008, the Bank’s total deposits balance reached Baht 18.6 Billion. Its total loan receivables are Baht 16.5 Billion.
AIG Card (Thailand) was established in September 2000, and offers credit cards and personal loan products to Thai consumers under the names of AIG Card, AIA Card, X Card, Man U Card and Just Cash. As of December 31, 2008, its receivable balance was Baht 9.3 Billion. Its customer base is over 300,000.
FOR MEDIA INQUIRIES, PLEASE CONTACT:
Bank of Ayudhya
Yaowalak Poolthong, Ph.D.
Head of Corporate Communications and IR
Bank of Ayudhya PCL.
Tel: 02 296 2443, 02 296 3729,
Fax: 02 683 1473
Email: [email protected]
AIG Retail Bank & AIG Card (Thailand)
Duchanee Naulkeiw
Pathomthida Phongleng
124 Communications PCL
Tel: 081 721 4949, 089 457 1180, 02 662 2266
Fax: 02 204 2662
Email: [email protected]
[email protected]
AIG, Inc.
David Monfried
Restructuring Communications
Tel: 1 (212) 770 7205
Email: [email protected]
Teri Watson
Investor Relations
Tel: 1 (212) 770 3067
Email: [email protected]