27 April 2005
Macquarie Bank today announced it was entering an investment banking joint venture with Thai Military Bank (TMB).
The joint venture, which will be called TMB Macquarie Securities (Thailand), will focus on stockbroking, equity research, equity capital markets (ECM), corporate finance and infrastructure funds management. It will also be commencing a greenfield retail broking business.
Under the joint venture arrangement, TMB will take a 51 percent stake in Macquarie Securities Thailand Limited (MSTL). MSTL was acquired by Macquarie when it bought ING's institutional brokerage business in 2004.
"We are very excited about the opportunities created by this joint venture," said Roy Laidlaw, Head of Macquarie Securities. "This is an important milestone in the development of Macquarie's investment banking business in Thailand."
Mr Laidlaw said TMB was an excellent partner for Macquarie in Thailand. "TMB has strong relationships with many of the largest companies in Thailand and is a leading equity investor and lender in the infrastructure sector. Through this joint venture we will be well-placed to provide investment banking services to the local business community."
TMB's President and CEO, Dr. Subhak Siwaraksa, said the partnership marked a further advance for TMB as a leading bank in Thailand.
"This joint venture with Macquarie will create tremendous synergies with TMB's strong corporate relationships. Macquarie's global investment banking experience will allow us to provide stockbroking, corporate finance and ECM services to our customers and give them access to world-class, innovative products."
According to Dealogic's Global ECM review for Q1 of 2005, Macquarie ranked second in ECM issuance for Asia ex-Japan.
Dr. Subhak said that TMB was particularly attracted to Macquarie's strong global ECM distribution capabilities and expertise in sectors such as infrastructure, utilities, resources, real estate and media - all of which are important sectors of the Thai economy.
The Macquarie Bank Group is a diversified international provider of specialist financial and investment banking services with over 6500 people in 23 countries. Macquarie has expanded rapidly in Asia since it opened its first office in Hong Kong in 1994. Its acquisition of ING's Asian cash equities business in March 2004 gave it a footprint in 10 Asian countries.
Around the region, Macquarie offers corporate and structured finance, warrants and structured products, institutional stockbroking and research and property advisory and management services. It employs approximately 800 staff in Asia.
Macquarie has one of the largest equities sales and research teams dedicated to Asia with more than 94 specialist sales people in Asia, Europe and North America selling Asia-Pacific stocks and more than 60 analysts covering over 500 stocks in the region. It has 12 dedicated ECM bankers among 115 corporate finance professionals in Asia.
Since its establishment in Asia in August 2004, Macquarie Securities (MS) has led seven public and privately placed equity offerings and acted as a syndicate participant on seven additional IPOs in Asia. MS has participated in deals across a number of markets including deals like SM Investments, Semirara and Banco de Oro in Philippines, China Shineway, Integrated Distribution Systems, Air China and China Netcom in China/Hong Kong and A-REIT and Yellow Pages in Singapore.
Macquarie is a member of stock exchanges in Hong Kong, Korea, Taiwan, Japan, Singapore, Philippines, Indonesia and Thailand and has trading capacity in China. Lastmonth the Bank was one of five firms given approval to establish a foreign stock broking company in Malaysia.
Thai Military Bank Public Company Limited (TMB) is a leading private sector commercial bank and financial services company operating a wide range of products and services to corporate and consumer customers in Thailand. TMB commenced operations in 1957 to serve members of the Thai military and has since expanded to serve a wide variety of corporate and individual customers. Today TMB has more than four million customers and 8,200 employees working in 464 branches in Thailand.
In September 2004, TMB completed a merger with DBS Thai Danu Bank and The Industrial Finance Corporation of Thailand, creating the fifth largest bank in Thailand in terms of assets. As of 31 December, 2004, TMB has expanded to include a network of 450 branches with 1,004 automatic teller machines ("ATMs"), 49 foreign exchange booths and 14 trade finance centres across Thailand. In addition, TMB operates 24 hubs dedicated to small-to-medium size enterprises (SMEs), one of the Bank's core customer targets.
TMB's principal business activities include corporate banking services, SME banking services and consumer banking services. A variety of products and services are offered under these divisions to corporate, SME and consumer customers. TMB is dedicated to developing new and innovative products and services to serve this broad customer base, many of which are delivered to relevant target customer groupings via an extensive branch banking network.
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