WEALTH MANAGEMENT | Tony Chua, Thailand

CIMB Thai eyes selling unit stake to parent

100% stake in Sathorn Asset Management with $90.38mln NPL planned to be sold to CIMB Group.

CIMB Thai (CIMBT) senior executive vice-president Ekajai Tivutanond said it plans to transfer another 5 billion baht ($150.69 million) in bad loans from its total of 9 billion to AMC Sathorn to cut the bank's distressed debts this year.

He said the asset sale was being processed by the Bank of Thailand, and should be completed within the first half of this year. CIMB Group committed to buy AMC Sathorn at the company's book value price as of 31 December 2009, at around 200 million baht. Part of the proceeds would be booked as bank profits for this year.

The management and employees of AMC Sathorn will be local people, despite CIMB Group being the major shareholder. The bank will transfer 70 to 80 staff to the asset management firm.

View the full story in Bangkok Post.

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