Sale of Bank Thai’s 2,800 million shares to Malaysia’s CIMB Group will have conclusion by November, according to Finance Minister Suchart Thadathamrongvej.

Mr. Suchart said he is considering allowing CIMB Group to acquire 42.13 per cent stakes in the ailing Thai Bank.

“I am to make the decision myself after HM the King’s endorsement of the new cabinet,” he said.

Bank Thai agreed to sell itself to CIMB Group last June in an attempt to raise 5,900 million baht in capital under the rehabilitation program.

Under Thai current Commercial Act, the deal must receive financial minister approval.
The previous Commercial Act allows foreigner to hold a limited 25 per cent stake in Thai commercial banks, but can be extended to 49 per cent maximum under the rehabilitation program.

The new Commercial Act allows foreigner to acquired over 49 per cent stake in Thai commercial banks under financial minister’s approval.

Bank Thai is already 42.13 per cent owned by the U.S. TPG Newbridge.

An acquired of 42.13 per cent by CIMB Group will add its foreign portion in shareholder to over 80 per cent.