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Published on March 6, 2008

Tisco Bank is interested in acquiring a major stake in another local bank of about the same size as one way to expand its business.

However, the bank has to make sure this would benefit it significantly, CEO Pliu Mongkornkanok said yesterday.

Buying into a small bank is an alternative for Tisco Bank to expand its business platform.

The target should have at least Bt100 billion in assets and have a number of branches proportionate to its scale, about 70-80 branches across the nation.

Tisco Bank built its assets to Bt98.95 billion last year and operates 27 branches nationwide.

The bank earlier admitted that it had once approached the Financial Institutions Development Fund (FIDF) about purchasing BankThai shares ahead of BankThai's recent capitalisation. The rescue fund now owns 33 per cent of BankThai, which had assets of Bt217.6 billion in 2006.

Divesting banks' stakes is in the FIDF's works as it is scheduled to shut down its operations in two years. The FIDF owns 47.58 per cent of Siam City Bank and 55.52 per cent of Krung Thai Bank.

But Tisco Bank has no plan to seek a new strategic partner. Foreign investors own some 75 per cent of Tisco Bank, with 49 per cent held through common shares and the remainder via non-voting depository receipts.

Tisco Group said yesterday it was revamping its shareholding structure by setting up a holding company for all its subsidiaries in place of Tisco Bank. The bank will swap its shares with the holding company and will delist from the Stock Exchange of Thailand.

The holding firm will list on the SET. The process is expected to be completed in October.

Pliu said the move would benefit the bank as it offers more flexibility in both doing business and managing risk.

The Nation