Published on July 16, 2005

Standard Chartered Nakornthon Bank (SCNB), a Thai unit of Standard Chartered Bank, will issue 460.1 million new shares to expand operations.

UK-based Standard Chartered Bank, which owns a 99.97 per cent stake in the Thai bank, will get 279.4 million new shares worth Bt6.15 billion. Standard Chartered Bank will settle the payment by merging its Bangkok branch with SCNB.

The remaining 180 million shares will be sold later to existing Thai shareholders at Bt22 each as will another 700,000 shares to other shareholders.

By October 1, SCNB will be renamed Standard Chartered Bank (Thai) Plc and its stock code changed to SCBT.

The bank will propose the merger for approval at a shareholder meeting on August 26. The bank has scheduled the subscription date for September 26-30.

The bank expects its registered capital to increase to Bt11.6 billion from Bt4.6 billion after the stock issue. The par value of the new stock is Bt10 each.

The merger is in line with the “single-presence” policy of the country’s financial master plan, which requires foreign banks to choose between holding a majority stake in a local institution or maintaining a branch of the parent bank in the country.

The financial master plan calls for streamlining the financial sector to reduce the chances of another financial crisis.

The 1997-98 financial crisis saw the demise of several banks and finance companies, stalling business activity throughout the economy.

The Bank of Thailand intervened in SCNB in the wake of the crisis and the bank was later taken over by the UK-based Standard Chartered Bank.

The bank’s stock has been suspended from trading since April 23, 1999 at a price of Bt3.30 a share.

The Nation

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