Thailand Financial News

BAY to own 77%; remaining 23% split among associated BAY companies. Bank of Ayudhya Public Company Limited (BAY) today announced it has increased its stake in Ayudhya JF Asset Management Limited (AJF) to 77%. AJF was previously a joint venture between BAY and JF Asset Management (JFAM).

The remaining 23% of AJF shares will be held by associated BAY companies, Ayudhya Securities Public Company Limited, Ayudhya Insurance Public Company Limited and Ayudhya Allianz CP Life Public Company Limited. The transaction is a continuation of BAY’s strategy of buying out minority interests in its subsidiaries, as seen recently with Ayudhya Securities Public Company Limited. BAY’s increased shareholding in AJF is consistent with its strategy of moving to a universal banking model where it can offer a complete range of financial services to its clients.
AJF will be the principal investment manager for the BAY Group, providing investment management services to customers of the Group. BAY will continue to provide a distribution channel for AJF products through the Bank’s national branch network. “We are delighted to be securing a majority share in AJF and are confident that AJF will continue to offer high quality investment management services to our clients,” said Pongpinit Tejagupta, President of BAY. “This move will allow BAY to offer a more comprehensive range of products and services to our customers.” The sale by JFAM of its stake in AJF is also part of the firm’s strategy of focusing on core businesses and markets consistent with its regional positioning. “We have had a successful nine years of involvement with AJF and have helped build a significant local asset management business,” said Roger Hepper, Chief Operating Officer of JFAM. “Whilst sorry to be leaving AJF, we believe AJF’s interests will be best served by allowing BAY to further increase its investment in the business and to therefore bring greater focus on AJF as a provider of investment management services for BAY clients.” Despite leaving the joint venture, JFAM will continue to work closely with AJF as JFAM manages international fixed income products for some of AJF’s valued clients. JFAM will continue to be a major investor in the Thailand equity market on behalf of its clients, with around USD 600 million invested in the Thai market through dedicated offshore investment vehicles and institutional accounts. JFAM and its associates will continue to provide international asset management services to Thai institutional clients from its investment hub in Hong Kong. The AJF joint venture was set up in 1997 and has been a profitable business. The financial performance of AJF has generally been impressive over years and AJF has subsequently become one of the leading asset management companies in Thailand.  Recent performance statistics show that many of AJF funds are ranked in the top quartile of their sector. The terms of the agreement between BAY and JFAM provided the option for either party to sell its stake to the other. JFAM and BAY have mutually agreed on the terms of that sale. Contact information BAY Charlotte Donavanik
First Executive Vice President Telephone:        +66 0 2296 3823-4
Email: Tinnawat Mahatharadol
First Executive Vice President Telephone:        +66 0 2296 3764
Email: JFAM Roger Hepper
Chief Operating Officer Telephone:      +852 2800 2801
Email: