Published on October 9, 2007
The ING Group will buy TMB Bank shares in the Thai bank's Bt35-billion capital increase. TMB shareholders are expected to approve the move on November 26.
Finance Minister Chalongphob Sussangkarn yesterday said TMB was expected to complete its capital increase this year.
He met with bank executives and members of Dutch-based giant ING yesterday to discuss the procedure for the increase. All agreed there were no obstacles to recapitalisation.
Chalongphob said ING executives would today present the recapitalisation plan to its board in the Netherlands.
The TMB board meets on October 18 and ING early next month to consider the recapitalisation.
TMB shareholders have scheduled a vote on the plan for November 26.
Chalongphob said the DBS Group confirmed it would not buy more shares and therefore would see its TMB holding diluted.
Chalongphob was unable to detail the exact holdings of the ministry, DBS and ING after the capitalisation.
TMB stock was heavily traded yesterday, rising to Bt2.06 a share during the early session before peaking at Bt2.12. Profit-taking saw the price fall to Bt2.04 at the close to end 4.62 per cent to the good on trade of Bt327.68 million.