Bangkok Bank agrees to sell 19% ACL stake to ICBC: report

Jul. 1, 2009 (China Knowledge) - Bangkok Bank Ltd, the largest lender in Thailand, has agreed to sell a 19% stake in ACL Bank Pcl to Industrial and Commercial Bank of China (ICBC)<601398><1398>, the world's biggest lender by market value, a Thai newspaper reported on Tuesday.

Kosit Panpiemras, the executive chairman of Bangkok Bank, said that talks between the two sides had ended.

Panpiemras also said that the deal needs approval from Thailand's ministry of finance since the Chinese lender seeks a majority shareholding in ACL and plans to buy more shares from other shareholders.

Since October 2007, ICBC has been trying to purchase a 49% stake in ACL, which is 30.6% held by the Thai ministry of finance.

ICBC, which has been focusing its overseas acquisitions on emerging markets, was reportedly in talks with Thailand's ministry of finance over purchase a 30% stake in ACL at THB8 per share, a price two to three times ACL's stock price, according to an earlier report from China Knowledge.