Bank of Ayudhya to acquire indirect AIG subsidiary

Bank of Ayudhya came to terms with the American International Group to acquire 100 percent shares of CFG Services Company Limited. The transaction, subject to the approval of the Bank of Thailand and BAY’s shareholders, is expected to be completed by the end of September 2009.

CFGS has assets of approximately US$58.6 million as of 31 December 2008, with a loan portfolio of approximately US$43.97 million.

Mr. Tan Kong Khoon, President and Chief Executive Officer, Bank of Ayudhya Pcl., said, "This transaction will allow BAY to enter into a new customer segment that is currently underserved by traditional banking products. CFGS has a strong presence in the title loan market with nationwide coverage of 163 branches. CFGS, known under the Srisawad Money on Wheels brand, possesses strong brand loyalty among its target customers. This acquisition is in line with our strategy to add variety to our consumer banking business."

Mr. Sabby Ray, Chief Executive Officer, AIG Consumer Finance Group (Asia) Ltd, said, "CFGS is an attractive business with tremendous opportunity for growth. This transaction will give BAY an opportunity to expand its consumer finance business to the next level. CFGS is well established with a strong distribution network and experienced staff. Our customers will enjoy broader product range and our employees will have greater opportunity for growth in the new organisation."