"The Singapore bank DBS Group said yesterday that it had declined to take part in the recapitalisation of Thailand's TMB bank, but added that it would remain a significant shareholder. . .
''Unfortunately, we did not receive adequate assurance that we would have sufficient management control to effect the business and operational changes necessary to improve TMB's performance.''
But Finance Minister Chalongphob Sussangkarn criticised the Singaporean bank's approach to the partnership. ''DBS, as a strategic partner, must also adapt and be flexible to the society and culture of the country,'' he said yesterday. ''For TMB, it will continue negotiations with ING Bank. The recapidhtalisation programme is expected to be completed by the end of the year.''
TMB has delayed its recapitalisation plan several times this year due to an inability to finalise an agreement involving the Finance Ministry, the largest shareholder at 31%, and DBS, which was seeking a greater say in how the bank would be run.
ING, which operates life insurance and asset-management franchises in Thailand, has expressed interest in taking a strategic stake in TMB to bolster its retail banking services.
But analysts question whether ING would prove any more open to accepting a partnership in TMB without full management control than DBS.
TMB is estimated to require up to 35 billion baht in new capital to help supplement its reserves and capital base. "
http://www.bangkokpost.com/150907_Business...p2007_biz01.php
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Singapore won't invest more in TMB
Started by BORG, Sep 16 2007 10:13 AM
1 reply to this topic
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Posted 17 September 2007 - 05:37 PM
The Thais don't seem to grasp the concept that people like to be able to control the money they invest in Thailand.
With the Thai Finance Ministry holding 31% of the Thai Military Bank stock, and the Thai military holding a reported 15-20 % more, it's easy to see why a Singapore bank would not be happy investing lots more money for a minority position with the Thais in charge.
The criticism made by the Thai minister that ''DBS, as a strategic partner, must also adapt and be flexible to the society and culture of the country" is absurd in this kind of business setting. It's no wonder that foreign investment here continues to decline, given the kind of parochial attitude reflected in that statement.
With the Thai Finance Ministry holding 31% of the Thai Military Bank stock, and the Thai military holding a reported 15-20 % more, it's easy to see why a Singapore bank would not be happy investing lots more money for a minority position with the Thais in charge.
The criticism made by the Thai minister that ''DBS, as a strategic partner, must also adapt and be flexible to the society and culture of the country" is absurd in this kind of business setting. It's no wonder that foreign investment here continues to decline, given the kind of parochial attitude reflected in that statement.
