SCB sells off SCSMG

This happened 2 weeks ago as well as a few other deals that I’m just getting around to writing about, the details are as follows:

  • Siam Commercial Bank (SCB) sold a 60.9% stake of Siam Commercial Samaggi Insurance (SCSMG)
  • The value of the transaction is USD 185 mn at THB 27.60/share and SCB is expected to make a profit of THB 1.7bn based upon its cost value of THB 11.9/share
  • The transaction is expected to be completed within 2Q14
  • In compliance with Thai regulators, ACE and its local Thai partner will make a mandatory tender offer for the remaining 39.1% of SCSMG

So what?

  • Well the stock is trading @ THB 26.50, if ACE and its local partners make the mandatory offer then at THB 27.60 thats a return of 4.15% within 6 months from trading. Then again nothing may happen and one is stuck with a holding in an insurance company.

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