Japanese Mitsubishi enters race for GE’s 25% stake in Bank of Ayudhya

Bangkok at night

Japan’s Mitsubishi UFJ Financial Group Inc (TYO:8306) has placed a preliminary bid for a 25.3% stake in Thailand’s Bank of Ayudhya, owned by  US conglomerate General Electric Company (NYSE:GE), Reuters reported today, quoting sources.

Another suitor for the stake, which is valued at USD1.5bn (EUR1.1bn), is Malaysian lender CIMB Group Holdings (PINK:CIMDF). Singapore’s Oversea-Chinese Banking Corp Ltd (SGX:O39), or OCBC, did not submit a bid, contrary to previous expectations, the sources, which wished to remain anonymous because of the confidentiality of the auction process, said.

Back in September GE divested a 7.6% stake in the Thai bank for USD466m under its global strategy to shed non-core assets. The second-round bids for its 25.3% are expected after Christmas.

GE’s advisor on the deal, Morgan Stanley (NYSE:MS), refused to comment. Reuters could not extract a comment from CIMB, MUFG and OCBC either.

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