Exclusive negotiations under way for BAY to acquire GE Money's consumer financial services businesses in Thailand to create further synergies for long-term growth
BANGKOK, THAILAND Bank of Ayudhya PCL (BAY) and GE Capital (NYSE: GE) today announced that they have reached an in-principle agreement on the sale of GE Money's businesses in Thailand to BAY. The preliminary agreement follows approval of indicative terms of the prospective acquisition at BAY's Extra-ordinary Board of Directors meeting (No 5/2009) held on 9 July. The proposed transaction is subject to various regulatory, corporate and shareholder approvals, as well as the completion of a definitive agreement. If closed, the transaction would represent an investment of approximately Baht 13.75 billion (or approximately USD391million) subject to closing adjustment.
Mr.Veraphan Teepsuwan, BAY's Chairman said, "The prospective purchase of GE Money, one of the largest consumer finance businesses in Thailand, is an innovative move forward. It will leverage the BAY-GE synergies and at the same time, enhance BAY's competitiveness and economies of scale. This will be another key milestone indicating the strength of our partnership and further reflects GE Capital's commitment in BAY."
Mr. Dmitri Stockton, President and CEO of GE Capital Global Banking said, "We have enjoyed a strong and productive relationship with our colleagues at BAY, and this transaction meets our corporate objectives of building scale and leveraging the strength of our partnerships in key emerging markets. Bringing these two successful organizations together will allow us to maximize value for our shareholders and strengthen our ability to serve customers."
GE Money Thailand is the country's largest card issuer, with over 2.2 million cards in circulation through its Central and Robinson credit cards and joint ventures with Tesco and Bank of Ayudhya ("Krungsri Credit Card"). GE Capital also has a strategic investment in BAY and holds a 33 percent stake in the bank. The move would further enhance GE Capital's participation in the bank and enable BAY to build on its strong platform and execute its growth plans.
BAY and GE Money Thailand will continue to operate "business as usual" and further details will be announced upon the conclusion of these discussions.
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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 Capital Global Banking, a premiere global consumer financial services firm have successfully become strategic partners. GE Capital 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 GE Money Thailand
GE Money Thailand is a leading consumer finance service provider that has pioneered the development of the consumer finance sector in Thailand for more than 15 years. GE Money Thailand offers a wide range of consumer finance products to over 4 million customers and is the largest credit card issuer in Thailand with over 2.2 million cards in circulation.
The non-bank businesses currently operated by GE Money Thailand include credit card, instalment finance and personal finance (First Choice Visa card and Power Buy cards), and three credit card joint ventures: Krungsriayudhya Card Company which manages Krungsri GE and Home Pro Visa cards, as well as Krungsri GE Dream Loan; General Card Services Company Limited which operates Central MasterCard, and Robinson Visa card; Tesco Card Services Limited which manages Tesco Visa cards.
GE Capital has a strategic investment in the Bank of Ayudhya and holds a 33 percent stake in the bank.
About GE Capital Global Banking
GE Capital Global Banking offers smart, flexible financial solutions to customers in 26 countries worldwide. From credit cards and personal loans, to auto financing, savings products, and many other innovative financial products, GE Capital Global Banking has a rich history of helping our clients and partners meet their business goals and achieve their dreams.
The Global Banking group is part of GE Capital, the global finance unit of General Electric, which provides a wide array of products and services to consumers, retailers and businesses around the world. To learn more about GE Capital and its parent company, General Electric (NYSE: GE), please visit www.ge.com. GE is Imagination at Work.
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, media content and advanced materials, 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
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]
For further information about GE Money Thailand, please contact Bangkok Public Relations Ltd
Ananya Sopittakamol or Panta Poonsapmanee at
Tel: 0-2664 9500, ext. 110, or 116, Fax 0-2664 9515
Email: [email protected]
GE Capital Global Banking:
Bob Rendine -- GE Capital Global Banking Communications
Telephone: +44 207 853 1925
Email: [email protected]
Lisa Farrugia
GE Capital Global Banking - Southeast Asia Communications
Tel: +65 6506 6413
Cell:+65 9653 1190
Email: [email protected]
Corporate Communications
[email protected]
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