The Bank of Ayudhya Public Company Limited (Krungsri) officially opened its doors on April 1, 1945. We found immediate public favor, grew rapidly and listed on the Stock Exchange of Thailand on September 26, 1977. Our steady growth has continued unabated to the present day. As of December 31, 2013, Krungsri Group had a total registered capital of THB 75,741 million and THB 60,741 million in paid-up capital.
Krungsri is Thailand’s fifth largest universal bank in terms of assets, loans and deposits today.
Krungsri constantly strives to provide for the ever-changing needs of our broad customer base by offering a comprehensive range of universal banking financial products and services to three key target groups: corporate, SMEs and consumers. We also provide related financial services through our subsidiaries and associated companies, which include wealth management, credit cards, non-life insurance, asset management, securities trading, auto hire purchase, equipment leasing, factoring, micro-finance and installment loans.
This year the Krungsri Group reached another key milestone in our history when we became a subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), which is the wholly-owned subsidiary of Mitsubishi UFJ Financial Group, Japan’s largest banking group and one of the world’s largest and most diversified financial groups.
A brief chronology of key shareholder developments in 2013 were as follows:
On 2 July 2013, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) announced it had signed a Share Tender Agreement with GE Capital International Holdings Corporation (GECIH) to purchase the shares in Krungsri held by GECIH. Under the agreement, BTMU was required to launch a Voluntary Tender Offer (VTO) for all shares at the price of THB 39 per share. GECIH would then tender its entire shareholding of 1,538,365,000 shares, representing 25.33 percent of Krungsri’s total shares, to BTMU.
“2013 MARKED AN IMPORTANT MILESTONE IN KRUNGSRI’S HISTORY WHEN IT BECAME A MEMBER OF JAPAN’S LARGEST FINANCIAL GROUP”
On August 27, 2013, Krungsri obtained approval from the Bank of Thailand for the Bank to have foreign shareholders with a combined stake of more than 49 percent.
On September 18, 2013, Krungsri announced our plan to purchase BTMU’s Bangkok branch.
On October 31, 2013, an Extraordinary General Meeting (EGM) of Krungsri’s shareholders was convened which approved the integration of the Bank and BTMU’s Bangkok branch by acquiring the assets of BTMU’s Bangkok branch and entering into a Conditional Branch Purchase Agreement between Krungsri as transferee and BTMU as transferor and other related agreements. The EGM also approved reducing the Bank’s registered capital from THB 70,893,927,550 to THB 60,741,437,470 and then approved increasing its registered capital from THB 60,741,437,470 to THB 75,741,437,470 by issuing not more than 1,500,000,000 new ordinary shares at par value of THB 10. These new shares would be issued as a private placement to BTMU and/or exchanged for the transfer of the assets of BTMU’s Bangkok branch.
In late December 2013, after the successful completion of the VTO, BTMU replaced GECIH as the strategic shareholder of Krungsri. BTMU currently holds 72.01 percent of the issued and paid-up shares, while Ratanarak Group holds 25 percent. Following the successful completion of the VTO, Moody’s Investors Service and Standard & Poor’s upgraded Krungsri ratings from Baa2 to Baa1 and from BBB- to BBB+, respectively. Similarly, TRIS Ratings also took a positive action by upgrading the Bank’s rating from AA- to AAA.
These developments will leverage both Krungsri and BTMU’s complementary strengths to establish a unique position for Krungsri in the Thai banking industry. BTMU is a world-class financial institution with a business network covering more than 40 countries worldwide. The partnership will strengthen Krungsri’s leading position in the retail
banking business in Thailand and across the region by providing access to a larger customer base. It will also significantly enhance the scale and diversity of Krungsri’s corporate and SME banking businesses, particularly with Japanese enterprises in Thailand and across ASEAN.