Logo of Phnom Penh Post newspaper Phnom Penh Post - Marked surge in Thai M&As as firms fight off coronavirus crisis

Marked surge in Thai M&As as firms fight off coronavirus crisis

Marked surge in Thai M&As as firms fight off coronavirus crisis

The Covid-19 pandemic has sparked a steep rise in mergers and acquisitions (M&A) in Thailand, an expert at CIMB Thai Bank Pcl (CIMBT) has said.

Businesses are choosing to fight the crisis by expanding or merging – especially in the hotel, health, hospital, and production sectors, said Pornchai Padmindra, CIMBT’s co-head of Wholesale, Corporate, and Investment Banking.

He said: “Currently, many more bank customers than previously are discussing business mergers and acquisitions in deals worth from one to 20 billion baht [$32 to 640 million].

“We expect customers to close their merger and acquisition deals within three to six months or in 2021 after observing business directions and ensuring the price is reasonable.”

Pornchai said 60 per cent of M&A deals were being made in Thailand, with the remaining 40 per cent in ASEAN countries such as Cambodia, Vietnam and Indonesia.

He said: “Therefore, we expect the bank’s revenue from granting loans to large businesses to grow by seven-to-nine per cent [year-on-year] in 2021, and this year by approximately six per cent from loans of approximately 70 billion baht.

“Financial transactions among ASEAN countries in 2021 are expected to grow by 20-30 per cent compared to this year.”

He said quality of large businesses’ debt was not a concern because the bad-debt level at CIMBT was currently only two per cent and the bank was helping customers to control their borrowing.

“We will control bad debt to ensure that it will not rise over three per cent,” he said.

He added CIMBT was prepared to extend up to 20 billion baht in loans for the business sector, of which 40 per cent had already been granted.

“We believe that the prepared credit limit will be sufficient because the situation in the bond market has now begun to improve,” Pornchai said.

THE NATION (THAILAND)/ASIA NEWS NETWORK

MOST VIEWED

  • Hungarian exposes 90 to Covid in Siem Reap

    The Ministry of Health has discovered 90 people who have been exposed directly or indirectly to a Hungarian man infected with Covid-19. They all are required to quarantine at home and the hospital. The ministry is searching for other affected people. Among the 90, one is the

  • PM warns of ‘new Cold War’

    Prime Minister Hun Sen said the possibility of a so-called new Cold War has become a significant concern and that all countries have to reject outright, any attempt to allow history to tragically repeat itself. He made the remarks in a speech during 75th Session

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • ‘Bad news is an investor’s best friend’ – unlocking investment potential in Cambodia

    It is time to shop. Economic woes provide good pickings for investors if they know where to look The poem If, written by English Nobel laureate poet and novelist Rudyard Kipling for his son circa 1895, is widely perceived as fatherly advice for John who would

  • PM requests Russia’s Covid vaccine

    Prime Minister Hun Sen has requested that Russia provide Cambodia with its Covid-19 vaccine after the former announced it planned on mass vaccinating its population next month. The request came on Thursday through the prime minister’s Facebook page as he met with Anatoly Borovik,

  • First ‘mobile kitchen’ in Cambodia enters service

    A catering company recently rolled out Cambodia’s first “mobile kitchen” – a $50,000 container capable of serving up to 200 people at a time. The kitchen is the brainchild of Seng Hok Heng Catering Services. At 4.4m-high, 6.8m-long and 2.4m-wide (expandable to 6.8m), the kitchen is equipped