Siam City-Thanachart merger on target

SCIB chief is optimistic that the combined 679 branches will provide room for further expansion.

After the April 29 shareholder meeting of Siam City Bank (SCIB), the merger process with Thanachart Bank is believed to run at full speed with the completion scheduled for end-2011, said SCIB CEO and President Chaiwat Utaiwan.

Within the first half, the tender offer for the remaining 33 per cent shares in SCIB will be announced.

"From then, there would be more clarity over the full cooperation between the two banks. TBank has asked for the Bank of Thailand's permission for a grace period. Each bank will maintain their businesses until the merger is completed, probably at the end of next year," he said during a press trip here.

In April 29, SCIB shareholders will be asked to endorse the appointment of all new directors, as both banks will come under a single board of directors which will work on the merger.

Chaiwat envisioned growth momentum after the merger of both banks, which each has about Bt400 billion ($12.41 billion) in asset size. SCIB now operates 422 branches and TBank 257 branches. Together, they own 679 branches, which are still way behind over 800 of each of the top four. As the fifth largest bank, there is a room for further expansion, he said.

Chaiwat attended a meeting with TBank directors after the latter completed the Bt32 billion ($992.71 million) payment to the Financial Institutions Development Fund on April 9.

View the full story in The Nation.