The sale by the state-owned Financial Institutions Development Fund (FIDF) of a 47.58% stake in Siam City Bank is the last opportunity for a foreign bank to enter the Thai market, given the government’s declaration that new licences are unlikely to be granted in the short term. The deal is also perhaps in another way the last opportunity for the bidders involved. With war chests of acquisition capital at the ready and managements eager to capitalize on the financial crisis to snap up opportunities, both Korea Development Bank (KDB) and HSBC have been looking to buy in Asia – with limited success so far.
“It’s not just the last chance in Thailand,” says an HSBC insider, “but perhaps for Sandy [Flockhart, Asia chief executive] and co to buy something in Asia while valuations are still down.
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