1. Here is a thought, what are the chances the govt will attempt to drive up TMBs market share price prior to the merger? It is not a good look for the price to be sitting at sub 2 baht whilst issuing new shares at 2.5+ to TBank investors. Based on yesterday’s closing price that is close to a 30% difference.

    When merger talks first started TMB was sitting at 2.3 baht or nearly 20% higher than last closing price.

    • The purpose of the merger is to negate the MoF requirement that it’s stake in TMB be sold at 2.5x BV.
      And create a big bank to compete blah blah blah
      More interesting is what is going to happen to the pieces left from this i.e. like the rumours regarding THANI today.

      • At some point MOF just needs to concede the loss, even if they end up taking up a discounted PP at 1.8 baht a share to lessen their average cost. The issue is with Tbanks shareholders which includes 49% from BNS Canada, are they willing to accept an inflated subscription cost now the market value of TMB has dived in the past 5 months?

    • No its been a sticking point since I heard the first rumours back in 2005 that the MoF’s stake was up for sale. No buyer was willing to pay this valuation hence the need for a merger.

  2. Ah, its gets a bit clearer now, TMB is willing to pay an inflated amount for TBank in exchange for Tcap subscribing to TMB offering at an inflated price, kind of offsets each other, but this way it will reduce the gap between the market price of TMB and MOFs holding cost. Makes the books look like a bit less red ink.

    Clever fat cats running these banks.

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