Malaysia's CIMB to buy BankThai stake - paper

BANGKOK, June 20 (Reuters) - Malaysia's second-largest lender, CIMB Bank, will buy a 42 percent stake in Thailand's BankThai BT.BK for about 5.9 billion baht ($176.5 million), a Thai-language newspaper reported on Friday.

CIMB, a unit of Bumiputra-Commerce Holdings (BUCM.KL), would pay 2.10 baht per share, the Post Today newspaper reported, quoting a source at the Financial Institutions Development Fund (FIDF), the central bank unit that has owned the stake since the 1997 Asian financial crisis.

The source said the Malaysian bank wanted to buy the whole of BankThai.

If TPG Newbridge [TPG.UL], the U.S. private equity fund that leads a consortium already holding a 42 percent stake, agrees to sell, the Malaysian bank would make a tender offer for the remaining shares, the source added.

Rival bidders for the stake included Britain's HSBC Holdings Plc (HSBA.L) (0005.HK) and Standard Chartered Bank (STAN.L), Thailand's Tisco Bank TISC.BK and TPG Newbridge.

BankThai shares, valued at $265 million on the Thai bourse, last traded at 1.32 baht before they were suspended trading on Thursday pending the outcome of talks on the stake sale.

Shares in CIMB's listed parent company, Bumiputra-Commerce, were suspended on Friday pending an announcement after chief executive officer Nazir Razak said the firm was interested in Bankthai. He did not elaborate. ($1=33.43 Baht) (Reporting by Arada Therdthammakun; Editing by Ed Cropley)