KTC Jumps 2% over the Acquisition of “Krungthai Leasing” to Expand the Hire Purchase Biz

Krungthai Card Public Company Limited (KTC) announced the Board of Directors Meeting held on February 10, 2021, has agreed upon the acquisition of the ordinary shares of Krungthai Leasing Company Limited from Krungthai Bank Public Company Limited (KTB) at the total of 75.05 million shares with a price per share of 7.92 baht that is equivalent to the total amount of 594,396,000 baht.

 

Once the transaction completes, KTC shall become the shareholder which is 75.05% of Krungthai Leasing ordinary shares. 

 

Furthermore, KTC and Krungthai Bank have agreed upon the ordinary share price that after the adjustment of the agreed buying share price, the value of share might be lower or higher from the agreed buying share price, however, the highest buying share price shall not exceed 13.15 baht per share, which is totaling of 986,907,500 baht.   

 

Such a transaction will allow KTC to complete the cycle of motor vehicle loans and increase the opportunity to expand into SME loans in the future, as well as allow the company to swiftly expand into hire purchase and leasing business.  

 

The share price of KTC in the morning session today rose ฿1.50/share or 2.19% to ฿70.00/share with a trading value of 472 million baht  in response to the merger and acquisition of Krungthai Leasing.