Scotiabank May Exit Thai Bank
CBJ — Bloomberg Business is reporting that Scotiabank may be looking to get out from its ownership stake in Thanachart Bank of Thaliland.
Toronto-based Scotiabank is said to be reviewing its 49% ownership stake, which has an estimated value of just under $2.5 billion.
Scotiabank has business ventures in 55 countries — the most of any major Canadian bank. Recently it has been prioritizing expansion in Latin America over Asia, due to onerous ownership rules and regulations.
A formal sale process could start early next year if Scotiabank decides to proceed with a divestment.
Scotiabank, which is Canada’s third-largest bank in assets, bought a 25% stake in Thanachart Bank in 2007 for $240 million. It then spent another $270 million two years later to boost its stake to 49%, which is the regulatory limit for a foreign bank’s ownership level in the Southeast Asian nation.