THAI FINANCE MINISTER TO DECIDE ON DEAL OF MALAYSIA'S CIMB

Incoming Thai Finance Minister Suchart Thadathamrongwet have given an assurance that he would make a decision soon on Malaysia's CIMB Group purchase of 42 per cent equity worth RM577.4 million (US$168.5 million) in BankThai PlC. Suchart said any decision pertaining to the purchase would be made before the lapse of the memorandum of understanding (MOU) between CIMB and Financial Institutions Development Fund (FIDF) which holds the stake.

"I will decide myself about the purchase...but definitely within the time frame specific in the MOU," he told reporters here Wednesday.

Suchart, currently the deputy finance minister, has been nominated to be the Finance Minister under new Prime Minister Somchai Wongsawat and the new Cabinet is waiting for Royal endorsement.

CIMB Group Chief Executive Officer Nazir Razak is said to have been here last week to meet with FIDF and BankThai executives as the deal must be completed by November.

In July, the Bank of Thailand requested the Finance Ministry to approve an increase in the foreign ownership limit for BankThai Plc.

CIMB announced in June that it would pay RM577.4 million to purchase a 42.13 per cent stake in BankThai from FIDF. It also proposes to buy the remaining shares.

The transaction requires Finance Ministry approval as the foreign limit of 49 per cent could be exceeded under the deal.

The acquisition will see CIMB Group emerging as the ninth largest commercial bank in Thailand in terms of assets through 147 branches nationwide.