Krung Thai Bank seeks control of Thailand Post
Krung Thai Bank PLC plans to submit proposals to the Information and Communications Technology Ministry next month regarding the purchase of a major stake in Thailand Post, the Bangkok Post reported.
The bank’s president Viroj Nualkhair said the bank believes that the investment would prove beneficial to both sides.
The bank and its subsidiary, Krungthai Card, would both look to hold shares together with a strategic partner, possibly an overseas postal service company.
“From our roadshows earlier this month during KTB’s own share offering, many investors have expressed interest in this business concept,” Viroj said.
“We’ve presented plans to offer financial services through Thailand Post, and many have expressed interest in joining us in the deal,” he said.
The bank has named ING as a financial advisor to study details of the deal.
He said the bank plans to propose a three-part plan to the ICT for the deal.
The first phase would be to allow Krung Thai Bank to become a major shareholder in Thailand Post, with authority to set company policy.
If approved, phase two would involve the setting of a share price and the actual investment transaction. Phase three would focus on drafting a strategic plan for Thailand Post to raise its competitiveness and expand into financial services, with the overall project expected to be completed within two years.
“Krung Thai Bank wants to take advantage of Thailand Post’s more than 1,000 offices nationwide. This represents a huge base to expand retail credit in the future,” Viroj said, adding that surveys showed that some 70 pct of the population currently lacked ready access to financial services from the banking system.
Viroj said he believed the deal offered Krung Thai Bank an additional channel toward its goal to be the market leader in payments, leveraging the network of Thailand Post offices to offer deposit, withdrawal and credit application services.
Thailand Post was set up in August following the corporatization of the Communications Authority of Thailand.
Thailand Post was set up with registered capital of 750 mln baht and has a staff of 14,070, with responsibility for postal services nationwide.
The company posted losses of 2.0 bln baht last year on revenue of 8.0 bln, due mainly to a government policy to keep postal costs low.
On Wednesday, Krung Thai Bank closed down 0.05 at 8.75 baht.
