Thailand to raise $1bln in Siam City sale

Sources say central bank would sell its 48 percent stake as Thai government loosens foreign investments restrictions.

Thailand's central bank plans to approach potential buyers including Standard Chartered Plc and Australia & New Zealand Banking Group Ltd. this week for a stake in Siam City Bank Pcl and is seeking about $1 billion, said two people with knowledge of the matter.

The list of companies the central bank will send preliminary documents to also includes Bank of China Ltd., China Construction Bank Corp. and Bank of Nova Scotia, the people said, asking not to be identified because the process is confidential, according to a report in Bloomberg.

Thailand, wracked by violent political protests in the past two years, is easing restrictions on foreign ownership of banks to encourage investment and boost competition in the financial industry. The $1 billion price would value the central bank's 47.6 percent holding at about 33 baht ($.99) a share, according to data compiled by Bloomberg. Siam City shares rose as high as a record 29.50 baht ($.89) on Monday.

"If they get that price, that’s quite high," said Sirinattha Techasiriwan, an analyst at Kasikorn Securities Co. who rates the shares "neutral." "It would be good news for the stock."