KBANK Admits Eyeing Myanmar’s Bank, Asserting Negotiation/Feasibility Study in a Process
KBANK stated that the deal to acquire stake in Myanmar is in the middle of negotiation and waiting for the approval from Central Bank of Myanmar.
Following the news reported yesterday on Kasikornbank Public Company Limited (KBANK) seeking to acquire a 35% stake in Myanmar’s Ayeyarwaddy Farmers Development Bank (A Bank), KBANK has given a clarification, stating that the deal is in the middle of negotiation and waiting for the approval from Central Bank of Myanmar.
KBANK stated that, according to the Central Bank of Myanmar’s notification, foreign bank are allowed to conduct a business in three license types as follows:
- Establish a commercial bank as a subsidiary
- Establish a foreign bank branch
- Apply for equity participation with a local bank
KBANK shows an intention on investment in Myanmar, to expand the business and to increase financial inclusion in Myanmar to have greater access to financial services. Also aims to expand the business opportunities and collaborations between Thailand and Myanmar.
However, the investment is in the process of consideration and negotiation for the proper investment in Myanmar. And the business license types will depend on approval decision by the Central Bank of Myanmar and the Bank of Thailand.