Japan's MUFG to pay $4.1 bln for Thai Bank of Ayudhya -Nikkei
TOKYO, June 22
TOKYO, June 22 (Reuters) - Japan's Mitsubishi UFJ Financial Group (MUFG) will pay around $4.1 billion to acquire Bank of Ayudhya Pcl, Thailand's fifth-largest lender, as part of an expansion into overseas markets, the Nikkei newspaper reported.
The amount, which totals 400 billion yen, would mark the biggest acquisition by a Japanese bank in Asia, the Nikkei reported.
It would also mark the second-largest foreign acquisition by a Japanese bank following the 900 billion yen MUFG payed for a 21 percent stake in U.S. brokerage Morgan Stanley, the Nikkei reported.
MUFG will launch a tender offer bid to acquire at least 51 percent of shares in Bank of Ayudhya, including U.S. conglomerate General Electric Co's 25 percent stake in the Thai lender, the Nikkei reported without citing sources.
MUFG is in the final stages of talks with Bank of Ayudhya's family owners and General Electric, with the aim of formally announcing the acquisition early next month, the Nikkei said.
Bank of Ayudhya's strengths are in consumer credit and lending to mid-sized firms, which will allow MUFG to expand its customer base in Thailand, according to the Nikkei.