Siam General Factoring Plc is to merge with Global Thai Finance Co through a 100-per-cent share swap in a move that will further reinforce consolidation in the local finance industry.
Sources in the industry said Siam General, which operates a factoring business, is at the preliminary stage of negotiations to acquire Global Thai.
“They will be appointing a financial adviser to conduct due diligence on Global Thai before assessing the asset price for the share swap,” said a source.
Following the merger, shareholders of Global Thai will hold shares in Siam General through the share swap according to their ratios.
With this deal, Siam General will also go through management restructuring.With Global Thai it will be able to widen its financial services to include investment banking and advisory services.
