TORONTO, Aug. 8, 2019 /PRNewswire/ - Scotiabank announced
today it has signed agreements with ING Groep N.V., Thanachart Bank
Public Company Limited ("TBank") and TMB Bank Public Company
Limited ("TMB") that largely follow the memorandum of understanding
announced in February. Scotiabank will reduce its 49% interest in
TBank and pursuant to the agreements, will sell its interests in
TBank in exchange for cash and shares in TMB (and ultimately the
bank resulting from the subsequent merger of TMB and TBank, (the
"Merged Bank")). Based on current values, this would result in
Scotiabank owning approximately 6% of the Merged Bank. Scotiabank
will retain a 49% interest in two TBank subsidiaries that are
expected to be subsequently sold in 2020.
The announced transaction is subject to customary closing
conditions, including regulatory approvals, and other non-customary
closing conditions which are particular to the many parties
involved. In addition, the transaction will be subject to a
shareholder vote by Thanachart Capital Public Company Limited and
TMB shareholders and is subject to successful completion of related
financing. The transaction is expected to close in Q1 2020.
At closing, the Bank will record a gain in the Other segment of
approximately $300 million after-tax,
subject to closing adjustments, and increase the common equity Tier
1 (CET1) ratio by approximately 25 basis points. The future sale of
the Bank's retained interest in the two TBank subsidiaries is
expected to result in an additional gain.
The Merged Bank will be well-positioned to become a leading
banking franchise in Thailand as a
result of increased scale, significant synergies and an expanded
customer base. TBank and TMB have agreed to work closely to develop
and implement an integration plan and provide a smooth transition
for the business.
This transaction, along with the others previously announced,
supports the Bank's strategic decision to focus on markets across
its footprint where it can gain scale and best support our
customers. Upon closing of this transaction and the other
previously announced transactions, the repositioning of our
international footprint will be substantially complete. Over the
last 4 years, the Bank has exited or announced its intention to
exit 20 countries and redeploy approximately $7 billion of capital to increase the Bank's
scale and market share in key markets. Our sharper geographic focus
allows us to drive sustainable earnings growth in these markets,
improve earnings quality and the customer experience while reducing
risk.
About Scotiabank, Thanachart Bank Public Company Limited and
TMB Bank Public Company Limited
Scotiabank is Canada's
international bank and a leading financial services provider in the
Americas. We are dedicated to helping our more than 25 million
customers become better off through a broad range of advice,
products and services, including personal and commercial banking,
wealth management and private banking, corporate and investment
banking, and capital markets. With a team of more than 99,000
employees and assets of over $1
trillion (as at April 30,
2019), Scotiabank trades on the Toronto Stock Exchange (TSX:
BNS) and New York Stock Exchange (NYSE: BNS). For more information,
please visit www.scotiabank.com and follow us on Twitter
@ScotiabankViews.
Thanachart Bank Public Company Limited is Thailand's sixth-largest bank by assets size
and the market leader in automobile financing. With roughly 500
branches nationwide, Thanachart Bank
offers a full range of financial services including retail, hire
purchase, corporate and SME banking, insurance, life assurance,
securities brokerage and fund management.
TMB Bank Public Company Limited is a financial services company
founded in 1957, primarily engaged in retail and commercial banking
operations in Thailand. As of
June 2019, TMB has 408 branches
offering financial services to over 6 million customers across
Thailand. TMB's total assets were
THB 891,713 million as at the fiscal
year end 2018. TMB's retail banking segment provides deposits,
loans, credit card, mutual funds and bancassurance to individuals
and the commercial segment provides financial management, deposits,
loans and investment banking services to corporate customers.
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SOURCE Scotiabank
