ICBC to Buy ACL Stake

China's largest lender by market value will purchase a stake currently held by the Thai government

Industrial and Commercial Bank of China has submitted a tender offer to Thailand's ACL Bank PCL, according to the Thai lender.

ICBC, China's largest bank by market value, will buy the lender's 30.6 percent stake, currently held by the Thai Ministry of Finance, at a price of 11.5 Thai baht per share. The validity of the offer is from March 9 to April 16.

Last month, the ministry of finance granted ICBC a waiver from the 49 percent foreign ownership limit on Thai banks. The Chinese lender may be able to purchase up to a 100 percent shareholding of the small lender.

Last September, ICBC reached an agreement with Bangkok Bank PCL, Thailand's largest lender by assets, to purchase the latter's entire 19.26 percent stake in ACL at 3.55 billion baht. Under the deal between ICBC and Bangkok Bank, Bangkok Bank will sell its stake in ACL to ICBC at the price of 11.5 baht per share.

It is ICBC's first foray into Thailand's banking industry since it raised US$ 21.9 billion in an initial public offering in October 2006. ICBC has been striving to expand its overseas operations. In 2007, it bought a 20 percent stake in Standard Bank Group Ltd., South Africa's largest bank by assets. Also in the same year, ICBC bought a 79.93 percent stake in Macau's third-biggest bank and a 90 percent stake in an Indonesian bank.

(Translated by SHX)

Full article in Chinese: http://finance.caing.com/2010-03-08/100123767.html