Bank of Ayudhya Completes Acquisition of GE Capital’s Consumer Finance Businesses in Thailand
Integration paves the way for BAY to become a leader in Thai consumer banking
BANGKOK, THAILAND [5 November 2009] Bank of Ayudhya PCL (BAY) and GE Capital (NYSE: GE) today announced the successful transfer of GE Money’s businesses in Thailand to BAY, following approval by the Bank of Thailand. The transaction represents an investment of THB 13.789 billion or approximately USD417.9 million (before taking into account agreed adjustments).
GE Money Thailand (GEMT) is one of the largest and most established consumer financial services businesses in Thailand, with over 15 years presence in the market and a reputation for innovative products and services which include First Choice and Quikcash. The acquisition of GEMT accelerates the growth of BAY’s consumer banking portfolio by increasing its retail lending portfolio from 36% to 42% of BAY’s total loans. The acquisition of GEMT will enhance BAY’s competitiveness, adding significant scale and diversity to BAY’s core consumer banking business. With the addition of GEMT’s current portfolio, BAY is now the largest card issuer in Thailand with over 3 million cards in circulation and serving over 8 million customers.
“Today’s acquisition of GE Money Thailand paves the way for BAY to become a leader in the Thai consumer banking sector,” said BAY’s Chairman, Mr. Veraphan Teepsuwan. “We will continue to execute on plans to grow BAY’s consumer banking portfolio to 50% of the overall portfolio, with a focus on boosting organic growth as a key priority. With BAY’s strategic partner, GE Capital, we will leverage our combined strengths to become a stronger and more formidable player in Thai consumer banking market. Our immediate focus is to ensure a smooth and successful integration for our newly acquired businesses into BAY”, he said.
“We are very excited by the strategic opportunities that are created through the combination of these two complementary organizations,” said Mr. Dmitri Stockton, President and CEO of GE Capital Global Banking. “With the transaction completed, we now look forward to working with our partners to maximize opportunities for BAY's continued growth and development."
As subsidiaries of BAY, consumer businesses under GEMT will continue to operate as usual. If there is any need for changes in the future, BAY will keep GEMT’s customers informed in advance.
About Bank of Ayudhya Public Company Limited
Bank of Ayudhya Public Company Limited [symbol in SET: BAY], established on January 27, 1945, is the fifth largest commercial bank in Thailand with total assets of Baht 750.601 billion. BAY provides a full range of banking services to both its commercial and individual customers through 573 branches nationwide. On 3 January 2007, BAY and GE Money, a premiere global consumer financial services firm, have successfully become strategic partners. GE Money and Ratanarak Group are now major shareholders with 33% and 25% stake in BAY respectively. For more information, please visit Bank of Ayudhya website,
www.krungsri.com.
About GE Money Thailand
GE Money Thailand is a leading consumer finance service provider that has pioneered the development of the consumer finance sector in Thailand for more than 15 years. GE Money Thailand offers a wide range of consumer finance products to over 4 million customers and is the largest credit card issuer in Thailand with over 2.8 million cards in circulation.
The non-bank businesses currently operated by GE Money Thailand include credit card, instalment finance and personal finance (First Choice Visa card and Power Buy cards), and three credit card joint ventures: Krungsriayudhya Card Company which manages Krungsri GE and Home Pro Visa cards, as well as Krungsri GE Dream Loan; General Card Services Company Limited which operates Central MasterCard, and Robinson Visa card; Tesco Card Services Limited which manages Tesco Visa cards.
GE Money has a strategic investment in the Bank of Ayudhya and holds a 33 percent stake in the bank.
About GE Capital Global Banking
GE Capital Global Banking offers smart, flexible financial solutions to customers in 25 countries worldwide. From credit cards and personal loans, to auto financing, savings products, and many other innovative financial products, GE Capital Global Banking has a rich history of helping our clients and partners meet their business goals and achieve their dreams.
The Global Banking group is part of GE Capital, the global finance unit of General Electric, which provides a wide array of products and services to consumers, retailers and businesses around the world. To learn more about GE Capital and its parent Company, General Electric (NYSE: GE), please visit
www.ge.com. GE is Imagination at Work.
About GE
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at
www.ge.com.
