Gulf quashes KBank takeover rumour as stake increases
Gulf Energy Development clarified that it has no plans to take over Kasikornbank (KBank), attributing its recent increased shareholding in the bank solely to its pursuit of investment gains.
“Gulf ’s primary motive for increasing its stake in the bank is portfolio investment, with no intention of a takeover,” chief executive Sarath Ratanavadi told the Bangkok Post.
Gulf, one of Thailand’s largest private power producers, raised its shareholding in KBank, the country’s second-largest bank by total assets, to 0.87%, making it the bank’s 14th-largest shareholder.
The exact percentage of Gulf’s previous stake i n KBank was not revealed.
This increase to 14th-largest shareholder in the bank caused some surprise in the market, leading to speculation that Gulf could potentially become KBank’s largest shareholder, considering the company’s strategy of inorganic growth for business expansion.
Thai NVDR Co Ltd holds the largest stake in KBank at 14.06% of the bank’s paid-up capital, followed by State Street Europe Ltd at 9.24%, and South East Asia UK (Type C) Nominees Ltd at 5.23%, according to information from the Stock Exchange of Thailand (SET).
Separately, KBank chief executive Kattiya Indaravijaya said investment gain is believed to be a primary objective for Gulf’s investment in the bank.
Gulf is also expected to invest in other SET-listed companies, she said.
KBank said the SET adjusted its regulations regarding information disclosure of shareholders, requiring listed companies to disclose the names of shareholders owning proportions of more than 0.5% of paid-up capital, as well as the top 10 largest shareholders.
These changes became effective from February.
Under Bank of Thailand regulations, shareholders seeking to acquire more than 10% of a bank’s paid-up capital must obtain permission from the central bank.
This regulation makes it challenging for shareholders to significantly increase their stakes in a financial institution.
KBank acknowledged the proportion and ranking of shareholders and investors in the bank will continually change, reflecting normal market fluctuations.
Investors may perceive investment opportunities and gains differently, with investment gains potentially including capital gains and dividend payments, said Ms Kattiya.