Mr. Rathian Srimongkol, President & Chief Executive Officer, "KTC" or Krungthai Card Public Company Limited, reveals, "During today's board of directors meeting (February 10, 2021), the board has authorised "KTC" or Krungthai Card Public Company Limited to acquire ordinary shares of KTB Leasing Company Limited or "KTB Leasing," a vehicle hire-purchase business under Krungthai Bank, in the proportion of a total of 75,050,000 ordinary shares (seventy five million fifty thousand) or 75.05 percent at a par value of 10 Baht per share and at a price of 7.92 Baht per share, amounting to a total of 594.396 million Baht with a condition to adjust the share purchase price to reflect the real value of the assets at later stage. Meanwhile, Krungthai Bank still holds 24.95 percent stake. KTC will seek for approval during its annual general shareholders' meeting in April 2021. This resolution in this agenda must be adopted by the majority of not less than three-fourths of the total votes of all shareholders who attend the meeting with the rights to vote, excluding the votes of stakeholders, and Krungthai Bank has to proceed further in accordance with the regulations related to the Bank of Thailand."
"Reasons behind the move to acquire "KTB Leasing" on this occasion stems from how we recognised the potential for growth in the business with service branches located across the main cities of every region in Thailand, along with the opportunity to conduct all types of hire-purchase and leasing businesses. These factors will fulfill and create opportunities for KTC to be able to branch out into a wider range of secured loan businesses, and to expand from "KTC P BERM" vehicle title loan in a more comprehensive and full-service way. KTC has geared towards running the secured loans business since the end of 2020."
"By investing in "KTB Leasing," KTC will obtain an entirely new consumer group and business alliances that will lead to major partnerships. KTC's strengths in terms of effective cost management, quality of port of receivables management, and the introduction of technology into various operating systems, coupled with the capabilities of management and personnel, and skilled financial product advisors with business expertise, will work in agreement in the development of the integration between both organisations. Consequently, this will enable the company's business to grow in a strong constant trajectory in the long run, and generate satisfying returns to the company and all stakeholders after the acquisition."
Source: Krungthai Card