Asia market round-up: …while CIMB shops in Thailand
Malaysia’s CIMB has finally closed a deal in Thailand after it was outbid by ICBC on a previous attempt to buy ACL Bank. CIMB will now acquire 42% of BankThai, and, pending regulatory approval, will then scoop up the bank’s remaining equity, paying around Bt2.10 per share for stock last seen trading at Bt1.32. BankThai is in desperate need of funding after suffering heavy losses on overseas CDO investments. Ratings agency Standard & Poor’s has put CIMB and its holding company BCHB on Creditwatch with negative implications, saying it needs to discuss fundng and integration plans with the group before reversing that move.