Bank of Ayudhya and GE Capital Sign Definitive Agreement Shareholders overwhelmingly approved acquisition
BANGKOK, THAILAND [31 August 2009] Bank of Ayudhya PCL (BAY) and GE Capital (NYSE: GE) have signed a definitive agreement for the sale of GE Money’s businesses in Thailand to BAY, in addition to receiving shareholder approval of the transaction at the BAY EGM held on August 27th. The transaction, subject to closing conditions, which include BoT approval, would represent an investment of approximately THB 13.789 billion (or approximately USD 405.4 million) subject to closing adjustments and is expected to be completed within the fourth quarter of 2009.
"The signing represents another important milestone in our strategic partnership with GE Capital and further strengthens the relationship with our partner,” said BAY’s Chairman, Mr. Veraphan Teepsuwan. “I am confident that the acquisition of GE Money Thailand, along with other recent acquisitions made by BAY will significantly boost the Bank’s presence in consumer banking and accelerate organic growth of the franchise. We look forward to concluding this transaction, with the approval of the BoT, before the end of 2009.”
Mr. Dmitri Stockton, President and CEO of GE Capital Global Banking, in Bangkok for the signing said, "The consolidation of our operations into BAY and the creation of one core strategy and vision for Thailand will provide our business and people with the best opportunities for long-term success. With our partner, we remain focused on reinforcing our consumer banking presence in Thailand through BAY to deliver better value to our shareholders and greater flexibility and choice to our customers.”
The sale of GE Money’s business in Thailand to BAY, including GE Money’s core credit card, instalment finance and personal finance franchise and three credit card joint ventures including Krungsriayudhya Card Company Limited, Tesco Card Services Limited and General Card Services, will substantially diversify BAY’s consumer banking portfolio. For GE Money Thailand’s 4 million customers, network of 27 First Choice branches and around 2,400 employees, becoming part of BAY’s extensive distribution network will provide customers with greater choice than ever before under one roof.
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 720 billion. BAY provides a full range of banking services to both its commercial and individual customers through 579 branches nationwide. On 3 January 2007, BAY and GE Capital Global Banking, a premiere global consumer financial services firm successfully became strategic partners. GE Capital and the 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 2.2 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 Capital 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.
