Oct. 1--Industrial and Commercial Bank of China will likely acquire all shares in Thailand's ACL Bank after completing a share sale agreement with a major shareholder.

Bangkok Bank yesterday announced that it had agreed to sell its entire 19.26 percent stake in ACL Bank to ICBC, the world's largest bank in terms of total assets, at 11.50 baht per share.

The Chinese bank will make a conditional tender offer to all ACL shareholders at the same price.

The voluntary tender offer would become effective upon ICBC receiving acceptances for at least 51 percent of ACL's outstanding shares.

ICBC may be able to acquire up to 100 percent in ACL Bank, the country's smallest bank, after Thailand's Finance Ministry on Tuesday agreed to sell its 30.61 percent holding to ICBC at 11.50 baht a share.

The voluntary tender offer is estimated to be worth up to 18.29 billion baht, based on the offer price of 11.50 baht and a new issue of about 1,088 million ordinary shares and about 502 million preferred shares of ACL as of Sept 28.

BBL will receive about 3.52 billion baht from the sale of its 306.26 million ACL shares in ACL.

ICBC chairman Dr Jiang Jianqing said in a statement that ICBC saw Thailand as an important strategic market.

"The transaction would be of great significance to the bank's business expansion in the Mekong River and the Southeast Asian region," he said. "ICBC will endeavour to contribute a development of the Thai economy and bilateral trade between Thailand and China."

Chatri Sophonpanich, the chairman of BBL, said the bank welcomed the ICBC investment in Thailand.

BBL and ICBC have always maintained a good relationship, he said. The two institutions would continue to develop their business partnership and provide financial services to customers both in China and Thailand.

BBL senior executive vice-president Deja Tulananda, said BBL would only sell its ACL shares to ICBC if the Chinese bank could acquire at least a 51 percent stake by buying shares currently held by the Finance Ministry and other investors. As a result, ICBC wants to make a tender offer, and the sales process is expected to complete within this year.

ACL president Thongchai Ananthothai said the bank would benefit from the new shareholder in terms of technology, financial support and increased business potential.

BBL shares closed yesterday at 121 baht, up one baht, in trade worth 846.6 million baht while ACL closed at 10.70 baht, up 70 satang, in trade worth 1.04 billion baht.

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