Bangkok--10 Jul--Bank of Ayudhya
Bank of Ayudhya Public Company Limited (BAY) and American International Group, Inc. (AIG) announced an agreement under which BAY will acquire CFG Services Company Limited (CFGS). The transaction, subject to the approval of the Bank of Thailand and BAY’s shareholders, is expected to be completed by the end of September 2009. Under the terms of the agreement, BAY will acquire 100% of the shares of CFGS.
CFGS has assets of approximately Baht 2.0 billion as of December 31, 2008, with a loan portfolio of approximately Baht 1.5 billion.
Mr. Tan Kong Khoon, President and Chief Executive Officer, Bank of Ayudhya Pcl. said, “This transaction will allow BAY to enter into a new customer segment that is currently underserved by traditional banking products. CFGS has a strong presence in the title loan market with nationwide coverage of 163 branches. CFGS, known under the Srisawad Money on Wheels brand, possesses strong brand loyalty among its target customers. This acquisition is in line with our strategy to add variety to our consumer banking business.”
Mr. Sabby Ray, Chief Executive Officer, AIG Consumer Finance Group (Asia) Ltd, said “CFGS is an attractive business with tremendous opportunity for growth. This transaction will give BAY an opportunity to expand its consumer finance business to the next level. CFGS is well established with a strong distribution network and experienced staff. Our customers will enjoy broader product range and our employees will have greater opportunity for growth in the new organization.”
As of March 31, 2009, BAY has Baht 535 billion in loans, Baht 524 billon in deposits and 583 branches nationwide. It ranks as the fifth largest bank in Thailand.
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 735 billion. BAY provides a full range of banking services to both its commercial and individual customers through 583 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. For more information, please visit Bank of Ayudhya website, www.krungsri.com.
ABOUT CFG SERVICES Co.Ltd.
CFG Services Co., Ltd. (“CFGS”) is a subsidiary of American International Group, Inc. ("AIG"), a world leader in insurance with operations in more than 130 countries and jurisdictions. CFGS has been operating in Thailand since March 2007 under the brand name “Srisawad Money On Wheels” which CFGS acquired from Srisawad International (1991). CFGS operates 163 branches in 71 provinces throughout Thailand, offering hire purchase and title loan products to its customers. As of December 31, 2008, CFGS has loans receivables of Baht 1.5 billion.
For media inquiries, please contact:
Bank of Ayudhya
Yaowalak Poolthong, Ph.D.
Head of Corporate Communications and Investor Relations
Bank of Ayudhya PCL.
Tel: 02 296 2443, 02 296 3729,
Fax: 02 683 1473
Email: [email protected]