TMB rights issue waits on S'pore deal
TMB Bank plans to defer its planned rights issue by one month to July, as its largest shareholder is in talks with DBS Group to allow the Singaporean financial-services group to increase its stake in the Thai bank, a TMB executive said yesterday.
The Finance Ministry has said it is ready to inject more capital into the bank but allow its shareholding proportion in the bank to be diluted. The ministry currently holds a 31.1-per-cent stake in TMB. TMB chairman Somchainuk Engtrakul said the ministry planned to let DBS raise its ownership in TMB Bank, Thailand's fifth largest bank by assets, to 20 per cent from 16 per cent currently. "However, the Finance Ministry will continue to be the bank's largest shareholder," Somchainuk said. The ministry has said the bank needs to raise around Bt35 billion to shore up its financial strength. TMB shareholders are scheduled to vote on the fund-raising plan on Friday. TMB earlier announced a plan to increase capital via a rights issue, to be completed by June. However, Somchainuk said the plan would be delayed slightly, saying there was no need to rush the recapitalisation. The ministry would like TMB to reach an agreement with all major shareholders before it starts the recapitalisation process. Somchainuk said the ministry would allow its shareholding proportion to be diluted because it was the ministry's policy not to be the major shareholder. If there is any chance to reduce its shareholding, it will gradually do so. According to a source at the ministry, it plans to hold around 25 per cent in the bank. TMB's management visited Finance Minister Chalongphob Sussangkarn yesterday morning to propose its business plan. TMB stock closed at Bt1.78 per share yesterday, up 0.57 per cent.
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