Breaking News! SCB Announces the Sale of SCBLIFE, Booking ฿92.7bn!!

The Siam Commercial Bank Public Company Limited (SCB) has announced that on July 1, 2019, SCB entered into a binding Share Sale Agreement with FWD Group Financial Services Pte. Ltd. (FWD) to sell its entire stake in SCB Life Assurance Public Company Limited (SCB Life).

Upon successful closing of the share sale, SCB and FWD will enter into a long-term distribution agreement (Distribution Agreement) forming a business collaboration in life insurance business and SCB will offer the life insurance products of FWD and SCB Life to SCB’s customers in Thailand through SCB’s distribution channels for a period of 15 years in accordance with the terms of the Distribution Agreement (Bancassurance Partnership). The Bancassurance Partnership will combine the strengths of both SCB and FWD to deliver a fresh customer experience, with easy-to-understand products, supported by digital technology.

The above-mentioned sale of shares is expected to be completed in the latter part of 2019, subject to the satisfaction of certain conditions specified in the Share Sale Agreement including to obtain SCB’s shareholders’ approval. Subject to completion of the share sale, SCB will receive a total consideration of THB 92.7 billion along with additional payments common in bancassurance transactions over the course of the Bancassurance Partnership, and this transaction will be the largest ever life insurance transaction in Southeast Asia in terms of total value.

SCB states that the company wishes to emphasize that completion of the sale of shares and the commencement of the Bancassurance Partnership are subject to certain conditions. In the meantime, SCB advises shareholders to exercise caution when dealing in SCB shares, and refrain from taking any action in respect of their shares which may be prejudicial to their interests.