On April 9, 2010, Thanachart Bank (in respect of which The Bank of Nova Scotia owns 49%) completed its acquisition of approximately 48% of Thailand's Siam City Bank. The stake in Siam City Bank was owned by Thailand's Central Bank through the Financial Institutions Development Fund.
In accordance with securities laws in Thailand, Thanachart Bank will launch a tender offer for the remaining shares in Siam City Bank. The purchase price for 100% of Siam City Bank (assuming full take-up on the tender offer) is approximately US$2.1 billion.
Subsequent to the completion of the tender offer and additional regulatory approvals, Thanachart Bank and Siam City Bank would be merged and become the fifth largest bank in Thailand measured by assets and branches. Scotiabank would continue to own 49% of the merged bank which will be known as Thanachart Bank. As part of the financing for this transaction, Scotiabank would contribute approximately C$650 million in capital to the bank.
Further information is found on Canada Newswire.