Thanachart Capital to Cooperate as Scotiabank Weighs Thai Sale

  • Scotiabank considers options for 49% stake in Thanachart Bank
  • Canada lender making strategic shift in Asia-Pacific operation

Bank of Nova Scotia’s Thai partner Thanachart Capital Pcl said it “will cooperate fully" if the Canadian lender decides to sell its stake in the Bangkok-based bank.

That cooperation is based on the understanding that the Toronto-based lender will offer its holding to “large, financially strong and reputable international financial institutions acceptable to Thanachart Capital with approval from the Bank of Thailand," the firm said in a Thai exchange filing.

Thanachart Capital is the majority shareholder with a 51 percent stake. Scotiabank may consider strategic options for its 49 percent ownership as part of a shift in the bank’s Asia-Pacific operations, Canada’s third-largest lender said Friday in a statement. No final decision has been made, the bank said.

Bloomberg reported Dec. 18 that Scotiabank was gauging interest in the stake eight years after first investing in the Thai lender. The holding was valued at C$2.4 billion ($1.7 billion) in Scotiabank’s 2015 annual report.

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