Thread: Thailand : ING reiterates: no sale of shares in TMB Bank

ING reiterates: no sale of shares in TMB Bank

BANGKOK, Oct 21 (TNA) -- After the Dutch-based ING Group received 10 billion euros to shore up its capital position, its subsidiary ING Life in Thailand, announced Tuesday that it would not sell its 30 per cent stakeholding in TMB Bank in this country, a senior executive said.

Deputy CEO Sompote Kiatkraiwal of ING Life in Thailand said the firm is now confident about its financial soundness after its parent company received financial support from the Netherlands government.

There should not be a business problem in Thailand and ING will continue to expand its businesses in this country next year, Mr. Sompote said.

ING announced earlier that it will issue 10 billion euros of core Tier-1 securities to the Dutch government. The transaction will bring ING Bank's core Tier-1 ratio to around 8 per cent, will strengthen its insurance balance sheet and will reduce the ING Group's debt/equity ratio to around 10 per cent.

The capital injection, in the form of nonvoting shares that ING called "core Tier-1 securities," will create "a strong buffer to navigate the current market and economic environment," ING said

The ING Group earned combined profits totalling 3 billion euros during the first two quarters of 2008, but suffered losses of about 500 million euros in the third quarter. Its Thai subsidiary did not suffer any losses in its life insurance reserves of about Bt9.5 billion.

The total insurance premiums of ING Life in Thailand are expected to rise 50 per cent next year from Bt4 billion in 2008, said Mr. Sompote. (TNA)

enews.mcot.net

The government of Thailand is considering to sell its 22.6% stake in local TMB Bank (BAK:TMB) and plans to approach Dutch financial services group ING Groep (AMS:INGA) with an offer to buy it, Sathit Limpongpan at the Thai ministry of finance said yesterday.

ING bought a 30% stake in the country's sixth biggest lender in 2007 for some EUR460m (USD609.4m).

The Finance Ministry has a clear policy to sell its stake in the bank, Limpongpan said, adding that the government would remain open also to other investors.

Insurance News - Thai govt to offer 22.6% holding in TMB Bank to Dutch ING

Thai govt still in talks with ING on TMB stake sale
(Reporting by Arada Kultawanich; Writing by Khettiya Jittapong; Editing by Jason Szep)

BANGKOK Feb 14 (Reuters) - Thailand's TMB Bank Pcl TMB.BK said on Monday the Finance Ministry has no rush to sell its 26 percent stake in the bank and it was still in talks with Dutch banking group ING (ING.AS) about the stake sale.

"We just entered into talks with ING last month. They still haven't said no," Chairwoman Saowanee Kamolbutr told reporters.

"There is no rush for the Finance Ministry to sell its stake now."

ING currently owns 30 percent in TMB, Thailand's seventh-largest lender.

The Finance Ministry wants to dispose of its entire 26 percent in TMB, a plan that is attracting the interest of other foreign investors.

There is speculation that Malaysia's CIMB (CIMB.KL) and China's ICBC (1398.HK) (601398.SS) are keen to buy the stake.

($1= 30.72 Baht)

reuters.com