September 29, 2009 — Industrial and Commercial Bank of China Limited ("ICBC") and Bangkok Bank Public Company Limited (“BBL”) jointly announced that the two banks have reached an agreement on the sale and purchase of shares in ACL Bank Public Company Limited (“ACL”). At the same time, ICBC declared that it will make a tender offer to all shareholders of ACL. The transfer by BBL of its shares in ACL to ICBC under the agreement above will be completed as part of the said tender offer.
Under the agreement between ICBC and BBL, BBL will sell its entire 19.26% stake in ACL to ICBC at the price of 11.5 Baht per share. Meanwhile, ICBC will make a conditional tender offer to all shareholders of ACL for all outstanding ACL shares at the same price. The tender offer will become effective upon ICBC receiving acceptances in respect of 51 per cent or more of the outstanding ACL shares. Through the above transaction, ICBC may be able to acquire up to 100% shareholding of ACL.
"ICBC has always attached great importance to the Thai market. This transaction will be of great significance to ICBC in the expansion of its business and network in the Mekong River region and also the South East Asia region. ICBC will endeavour to contribute to the development of the Thailand economy and bilateral trade between China and Thailand," says Dr. Jiang Jianqing, Chairman of ICBC.
Mr. Chatri Sophonpanich, Chairman of BBL said, “We very much welcome this investment by ICBC in the Thailand market. BBL and ICBC have always maintained a good business relationship. Looking forward, the two banks will continue to develop a business partner relationship and together provide better quality financial services to clients in China and Thailand.”
The conditions precedent to the making of the voluntary tender offer by ICBC are ICBC’s shareholders approval and relevant approvals and waivers from the regulatory authorities in China and Thailand having been obtained.
ACL Bank Public Company Limited
ACL Bank Public Company Limited (“ACL”) was established in 1969. ACL was first listed in Thailand Securities Exchange in 1978, and obtained a universal banking licence in 2005. ACL is headquartered in Bangkok and has 16 branches across major cities of Thailand. Its target client base consists primarily of sizeable Thai enterprises in the Greater Bangkok region and it operates lending, deposit, foreign exchange and other businesses. Through its subsidiary, ACL operates a leasing business and through its associated company it operates a securities business. As at the end of June 2009, the total assets, total loans and total deposits of ACL were, respectively, 63.71 billion Baht (approximately US$1.87 billion), 46.19 billion Baht (approximately US$1.36 billion) and 35.31 billion Baht (approximately US$1.04 billion). For more information on ACL, please visit www.aclbank.com.
Bangkok Bank Public Company Limited
BBL was established in 1944. It is the largest commercial bank in Thailand, and one of the largest regional banks in South-East Asia, with total assets of over US$50 billion. BBL is the market leader in corporate and SME banking, and has the largest retail customer base in Thailand. It has 16 million accounts comprising of business and retail customers, over 230 business centers and business desks and a nationwide network of approximately 920 branches. BBL now holds 19.26% interests in ACL. For more information, please visit www.bangkokbank.com.
Industrial and Commercial Bank of China Limited
ICBC was established on 1 January 1984. Its name was formally changed to “Industrial and Commercial Bank of China Limited” following its restructuring to be a joint-stock limited company in October 2005. On 27 October 2006, ICBC was concurrently listed in Shanghai and Hong Kong, which was the largest IPO in the history of the world in terms of amount of fund raised. Through continuous efforts and stable development, ICBC has become the most profitable bank in the world with the largest market capitalization, the largest customer deposits balance and the highest brand value. ICBC boasts an excellent customer base, a diversified business structure, strong innovation capabilities and competitiveness. It has substantially built upon a multi-jurisdictional and globalised operation focusing on commercial banking business, and maintained market leading position in almost all commercial banking businesses in China. As of June 30, 2009, ICBC had 16,230 outlets in Mainland China, 143 overseas branches and subsidiaries and has established agency relationships with 1,378 banks globally and its total assets amounted to RMB 11.4 trillion (approximately US$1.7 trillion). For more information on ICBC, please visit www.icbc.com.cn.