ENP Newswire - 20 December 2013 Release date- 19122013 - Mr. Veraphan Teepsuwan, Chairman of the Board of Directors, Bank of Ayudhya Pcl ., reported the successful voluntary tender offer (VTO) launched by The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), a 100% subsidiary of Mitsubishi UFJ Financial Group (MUFG), one of the largest financial groups globally, stepping in to become the new controlling shareholder in Bank of Ayudhya (Krungsri). On December 18, 2013 , the VTO at THB 39 per share was completed with BTMU securing approximately 72% of the total issued shares of Krungsri while the Ratanarak Group , the original Thai major shareholder, did not sell shares in the tender and still maintains around 25% of the total issued shares enthusiastically embraces BTMU as the new major shareholder. Mr. Veraphan stated that the share acquisition will not only strengthen Krungsri's position, but also be a major boost and provide positive impact for Thailand as BTMU has demonstrated to the world that, during political turbulence and economic slowdown, BTMU did not hesitate to invest and become a controlling shareholder in Krungsri on an overwhelming proportion with an investment budget of approximately THB 171 billion . Such move by one of the largest financial groups from the land of the rising sun is a vote of confidence on the future of Thailand . Mr. Veraphan also added that next month Krungsri will officially begin the process for the integration of BTMU Bangkok Branch business into Krungsri which is expected to be completed by December 2014 . Krungsri plans to issue not more than 1,500,000,000 new shares at THB 39 per share in payment for the branch asset in a private placement in favor of BTMU upon the 12 months completion in the amount of up to THB 59 billion . As aresult, BTMU's shareholding in Krungsri will marginally increase while the ratio of shareholding for others hareholders will be slightly diluted (the Ratanarak Group from 25% to around 21%). Understandably the Ratanarak Group will now position itself as the constructive and significant partner to BTMU. Mr. Veraphan also commented that such significant shareholding in Krungsri automatically obligates BTMU to full commitment in assuring that Krungsri performs and deliver results. He ended the comment by saying that multinational companies nowadays compete not only through the mere size of its shareholding but also through the offering of innovative products and services, as well as efficient management while maintaining good corporate governance for benefits of all stakeholders. BTMU already possesses all these qualities but only time will prove whether Krungsri can fully showcase BTMU's capability especially in gaining access to global multinationals and large local corporate clients through the support of its new major shareholder. [Editorial queries for this story should be sent to email@example.com ] ((Comments on this story may be sent to firstname.lastname@example.org ))
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