Thailand set to allow foreign owner for ACL Bank

BANGKOK Feb 18 (Reuters) - Thailand's Finance Ministry signalled on Thursday it would clear the way within days for a foreign buyer to take control of ACL Bank ACL.BK, giving fresh momentum to a $530 million bid by China's ICBC.

"I think everybody sees the merits of the deal," Finance Minister Korn Chatikavanij told Reuters in an interview.

Industrial and Commercial Bank of China (ICBC) (1398.HK), the world's largest bank by market value, said last September it wanted to bid for the bank, after agreeing to buy a 19.26 percent stake from Bangkok Bank BBL.BK for 3.52 billion baht ($106 million).

The Finance Ministry is the largest shareholder in ACL, Thailand's smallest lender, with 30.6 percent. Its stake, combined with Bangkok Bank's 19.26 percent, would give ICBC (601398.SS) 49.86 percent of ACL.

Foreign holdings of more than 49 percent in a bank need official approval.

"The Ministry of Finance has been looking at the recommendation by the Bank of Thailand. The permanent secretary's job is to present his recommendation to me. It's now on my desk," Korn said. "I should be able to put my signature on this within days."

"The recommendation is for me to use my powers to allow a foreign buyer, that is ICBC or whoever else that might choose to outbid ICBC in the tender."

"It would be the first time that such power under this new law is used in a 'non-distress' situation," he added, referring to a 2008 law on bank ownership.

ICBC agreed to pay 11.5 baht per share for Bangkok Bank's stake.

The shares were quoted at 11.10 baht at 0800 GMT on Thursday, giving it a market value of 17.6 billion baht ($531 million). ($1=33.17 Baht) (Reporting by Jason Szep; Editing by Alan Raybould)