GE Money Asia president and CEO Yoshiaki Fujimori, left, and Veraphan Teepsuwan, Bank of Ayudhya’s newly-appointed chairman, share a toast during the first official press conference between the two parties after the share purchase deal was completed.

Bank of Ayudhya's (BAY) management structure will be significantly changed after its strategic investment deal with GE Capital International Holdings is completed.

The positions of chief executive officer (CEO) and chief financial officer are reportedly to be filled by GE, while the position of president is to be scrapped.

The bank said it would continue to be controlled by a board of directors supported by an experienced management team. The board expects to announce the appointment of a new CEO within the first quarter of the year, Veraphan Teepsuwan, the bank's newly appointed chairman said at a press conference yesterday.

This was the first official press conference held by the two financial institutions since the BAY-GE acquisition deal was completed on January 3.

GE paid Bt16 per share for a 25.4-per-cent stake in BAY, making the deal worth around Bt22 billion.

"The position of president will be abolished, the CEO will assume the responsibilities [formerly held by the president]. The bank's management team will also be restructured. People who are efficient have nothing to be afraid of," Veraphan said.

His statement came amid wide speculation that some senior BAY executives were to be removed. One name mentioned earlier was the bank's president Pongpinit Tejagupta, who was absent from the press conference, while Charlotte Donavanik, its first senior executive vice president, was present.

Veraphan is the bank's new chairman, replacing Krit Ratanarak, who recently resigned from his positions as chairman and director. The bank's CEO is Ekasak Buripol, whose term will end in two months.

Veraphan said once the new CEO had been appointed, its business plan for this year would be announced. However, he said asset size would not be the key issue in the plan, which will focus mainly on building a stronger financial base as well as giving value to stakeholders.

 Under the integration plan, BAY would exploit its expertise in corporate loans to run the bank's operations, while GE would concentrate on expanding retail banking.

Separately, GE Money Asia president and CEO Yoshiaki Fujimori said GE's goal was for BAY to become the leading bank in Thailand with the help of good synergy between the two financial firms.

GE would transfer expertise in retail finance, particularly risk management and customer-relationship management.

 "Thailand's economic outlook is still good and we have confidence in it for the long term. So the deal is seen by GE as a long-term investment and we believe we will get a good return," Fujimori said.

GE does not plan to change the bank's name or its colour symbol because BAY already has a quite strong brand image, he said. 

GE Money has been operating in the consumer-finance business in Thailand for over 10 years, with around Bt40 billion invested.

Somruedi Banchongduang

The Nation