Siam General Factoring Plc's purchase of Global Thai Finance will bring financial expertise to the former and a backdoor listing to the latter.
The deal will see Global Thai Finance executives taking all the power, with its head Kittivalai Charoensombut-amorn expected to be the president of the renamed entity, a finance source said yesterday.
The new player will become the financial base for Siam General's major shareholder, Wichai Thongtaeng, who controls a range of businesses including Paolo Hospital and Prasit Pattana Plc, the operator of four Phyathai Hospitals.
Wichai is the lawyer who successfully defended Prime Minister Thaksin Shinawatra in his asset-concealment case.
Global Thai's shareholders will own 20-30 per cent of Siam General Factoring, while Wichai will see his holding diluted to 70 per cent, the source said.
Kim Eng Securities (Thailand) serves as the financial adviser on the transaction.
