ICBC Buys 97% Stake in Thai Bank

ICBC, the world's largest bank by market value, took over Thailand's ACL Bank for US$ 550 million

Beijing (Caixin) -Industrial and Commercial Bank of China, purchased a 97.24 percent stake in Thailand's ACL Bank PCL for US$ 550 million, a major step in the Chinese lender's overseas expansion.

Of the 97.24 percent stake, 30.6 percent was previously held by the Thai Ministry of Finance. ICBC bought the ministry's stake at the price of 11.5 Thai baht per share. Last month, ICBC submitted a tender offer to the Thai bank, whose validity was from March 9 to April 16.

In February, Thailand's Ministry of Finance granted ICBC a waiver from the 49 percent foreign ownership limit on Thai banks.

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 Thai baht. Under the deal between ICBC and Bangkok Bank, Bangkok Bank would sell its stake in ACL to ICBC at the price of 11.5 Thai baht per share.

It was 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.