Shares of Thai lender SCB hit their highest level in 2 years following restructuring and new fund
BANGKOK, Sept. 23 (Reuters) – Thailand’s Siam Commercial Bank Pcl saw its share price hit a 25-month high after markets opened on Thursday, following the announcement of a major restructuring plan and a new venture capital fund with Charoen Pokphand Group.
Thailand’s third-largest asset lender said on Wednesday it would establish SCBX as the parent company through a 1: 1 share swap.
SCBX would replace SCB as a listed entity and a one-time dividend of 70 billion baht ($ 2.09 billion) would be paid to SCBX to fund the business transfer, new investments and payment to shareholders.
The share price rose 17% against an index gain of 0.42% on Wednesday.
The exchange of shares is subject to the approval of shareholders and regulatory authorities. He plans to delist SCB in February of next year.
King Maha Vajiralongkorn is the main shareholder of the bank with a 23.38% stake.
The bank also announced a venture capital fund of up to $ 800 million in size, which will be managed with local food conglomerate, Charoen Pokphand Group, to invest in blockchain technology and digital assets.
SCBX is said to own shares in more than 16 companies, including auto loans, credit cards, AI-based loans, and food delivery.
It aims to have 200 million customers by 2025 in the region and achieve a market capitalization of 1,000 billion baht ($ 29.79 billion) versus 372 billion baht. ($ 1 = 33.5700 baht) (Reporting by Chayut Setboonsarng; Editing by Martin Petty)