KTC buys KTB Leasing shares to penetrate car hire purchase business

February 10, 2021 time 22:04

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KTC plans to invest 594 million baht to buy 75.05% stake in KTB Leasing to penetrate auto loan business. Hoping to be a leader in the integrated credit business

Mr. Rathian Srimongkol, Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited, revealed that “The Board of Directors meeting today (February 10, 2021) has approved the“ KTC ”or the Company. Krungthai Card Public Company Limited to invest in the company Krung Thai Leasing Business Co., Ltd. or “KTB Leasing” car hire purchase business under Krung Thai Bank group. By purchasing a total of 75,050,000 ordinary shares (hurt fifteen million and fifty thousand shares), representing 75.05% at a par value of 10 baht per share at a price of 7.92 baht per share, totaling 594.396 million baht, with conditions of price adjustment Trading shares later according to the real value of the property. While Krung Thai Bank still holds 24.95% stake, it will present the matter to the shareholders’ meeting in April 2021 for approval to enter into the said transaction. It must be approved with a vote of not less than three-fourths of the shareholders who attend the meeting and have the right to vote. Without counting the votes of interested shareholders and Krung Thai Bank has to proceed in accordance with the regulations related to the Bank of Thailand. “

“The reason for buying“ KTB Leasing ”this time is because it is a business with potential for growth. There are service branches in the main cities of every region in Thailand. And able to do all types of hire purchase and leasing businesses, which will help fill and create opportunities for KTC to expand its wide collateralized credit line. More comprehensive and comprehensive Extend the balance of the car registration loan “KTC Pibem” to complete the transaction. Which KTC started Deflect to do business with collateral at the end of 2020. ”“ Investment in “KTB Leasing” will enable the Company Acquire another group of customers And business partners that will cause significant synergies Together with KTC’s strengths in cost management Quality management, accounts receivable portfolio and the introduction of technology into various operating systems Effective Including the potential of the management team, personnel and financial product referrals with experience and business expertise It will benefit us to develop knowledge of both organizations together. To enable the company’s business to grow strong and sustainably in the long term And can create satisfactory returns for the company And all groups of stakeholders after the shareholding “

For “KTB Leasing” is a financial business company. To meet the needs of individual and corporate customers With types of Hire Purchase and Financial Lease services including

1. Movable leasing for operators such as trucks, excavators and machines, etc.

2.Operating vehicle leasing Or rental cars for business activities of various organizations

3. Providing new car leasing services Used car leasing and revolving car loans (Car registration pledge)

4. Providing credit for all kinds of consumer products Whether it is electrical appliances, IT equipment, motorcycles or accessories.

For KTC, the operating results for the year 2020 (ending December 31, 2020) are as follows: net profit of 5,332 million baht, total loans to receivables and accrued interest receivables, 90,149 million baht, NPL to total loans is 1.8% base Total 3.4 million accounts, divided into 2,575,684 credit card business, credit card accounts receivable totaling 60,235 million baht, NPL to loans, 1.3% credit card receivables, personal loan business totaling 814,329 accounts, total personal loan receivables 29,915 million baht, NPL to loans. Personal loan receivables equal 2.7%

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