Krungthai Card Public Company Limited entered into an agreement to acquire 75.1% in KTB Leasing Co., Ltd. from Krung Thai Bank Public Company Limited for approximately THB 600 million.

Krungthai Card Public Company Limited (SET:KTC) entered into an agreement to acquire 75.1% in KTB Leasing Co., Ltd. from Krung Thai Bank Public Company Limited (SET:KTB) for approximately THB 600 million on February 10, 2021. As per terms, 75.1 million shares will be acquired at THB 7.92 per share. Half of the consideration will be paid on closing and balance in November 2021.

The offer per share is subject to adjustments and the highest price will not reach THB 13.15 per share. Post completion, Krung Thai Bank Public Company Limited will hold 25% stake in Krung Thai. The consideration will be financed from operating cash flows.

The Board of Krungthai Card Public Company Limited, Ministry of Finance, SEC and Thailand Stock Exchange approved the resolution. The deal is subject to approval from shareholders of Krungthai Card Public Company and approval from Bank of Thailand. As of May 21, 2021 Krungthai Card Public Company Limited (SET:KTC) shareholder's and Bank of Thailand approved the deal.

The conditions and the transaction are expected to be completed within April 2021. Silom Advisory Company Limited acted as financial advisor for Krungthai Card Public Company Limited.