Jun. 30--Bangkok Bank has finalised the sale of a 19 percent stake in ACL Bank to the Industrial and Commercial Bank of China.

Reports that the deal was near to closing helped push ACL shares up 11.43 percent yesterday on the SET.

Kosit Panpiemras, executive chairman for BBL, said talks between BBL and ICBC have been completed.

"Now it is up to the Finance Ministry. We have to wait for government approval as [ICBC] is seeking a larger stake in ACL, and wants to launch a tender offer for other shares," he said.

The Finance Ministry is the largest single shareholder in ACL with a 30.6 percent stake. ICBC, China's largest bank, is seeking up to a 49.9 percent stake.

The deal's terms have yet to be announced, but it would be about 1.8 billion baht based on current prices.

Shares of ACL closed yesterday on the SET at 5.85 baht, up 60 satang, in trade worth 347.67 million baht. Bangkok Bank shares closed at 107 baht, up one, in trade worth 271.94 million baht.

BBL has been in talks with ICBC since 2007 to comply with cross-shareholding restrictions under the central bank's "single-presence" policy. BBL has paid penalties for violating the rule due to the drawn-out talks.

ACL is one of the country's smallest banks, with assets of just 62.33 billion baht and outstanding loans of 40.9 million as of the end of May. The bank posted first-quarter profits of 96.78 million baht, down from 119 million the year before. Consolidated profits totalled 370.65 million baht in 2008, up from 342.9 million the year before.

Mr Kosit said BBL would report a year-on-year loan contraction in the second quarter, although lending trends had improved from the first quarter.

BBL had outstanding loans of 1.069 trillion baht at the end of March, down more than 4 percent from the end of 2008.

Lending growth systemwide would likely turn positive in the fourth quarter of the year, including for BBL, he said.

In any case, BBL will maintain a loan growth target of 3 percent to 5 percent for 2009, based on a projection of a 3 percent economic contraction for the year.

"Lending growth will be challenging considering the recession," he said.

It could take 18 months for a clear rebound in the economy, he said. Growth is likely to return from the fourth quarter, thanks to low-base effects and the government stimulus programmes.

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