TPG will sell its 37 percent stake in BankThai to Malaysian bank CIMB Group, at a cost of BHT2.10 ($0.60; €0.40) per share.
The move comes two weeks after CIMB purchased a 42 percent stake in the bank, from the Bank of Thailand’s Financial Institution Development Fund. The transaction took place on 5 November at the same price of BHT2.10 per share.
TPG bought 500 million shares in ThaiBank for $186 million in 2007. It agreed to buy additional shares later that year as part of a recapitalisation process, following losses from its investment in the US subprime securities. TPG’s share margin increased from 24.99 percent to nearly 37 percent.
In a statement TPG said it believes Thai Bank will best realise its prospects by having one controlling, strategic shareholder.
In a separate transaction on 3 November, TPG agreed to invest US$150 million in Bumiputra-Commerce, the listed vehicle of CIMB Group, by subscribing to bond-warrants in a private offering. The two-year senior unsecured bonds will yield an annual coupon of 3 percent.
Under the agreement TPG will receive approximately 50 million warrants to purchase ordinary shares of Bumiputra-Commerce at a price of RM10 per share. Bumiputra-Commerce will only issue the bonds and warrants after the tender offer for BankThai shares closes on 6 January 2009.