Bank of Nova Scotia has completed the acquisition of an additional 24% of Thanachart Bank, Thailand’s eighth-largest bank and leading automobile lender, for approximately $270 million.

Scotiabank will purchase 416 million shares from Thanachart Capital raising Scotiabank’s holding in Thanachart Bank to 49%, the bank said Tuesday.

That’s the regulatory limit for foreign banks in Thailand.

“The Thai market has solid fundamentals with good long-term growth prospects,” says Rob Pitfield, group head, international banking, Scotiabank. “Scotiabank’s increased investment in Thanachart Bank is a great opportunity for us to capitalize on the strength of the Thai market and on the strong relationship that we have already built with Thanachart Bank.”

As a result of Tuesday’s investment Thanachart Bank’s major shareholders now include Scotiabank, and Thanachart Capital Public Co. Ltd. (holding 50.9%) with retail investors holding 0.1%. The higher stake in Thanachart Bank will also increase the number of Scotiabank representatives on Thanachart Bank’s board of directors from two to three.

“Thanachart Bank is a solid financial institution, with a very strong core business in the automobile sector and a solid management team,” says Michele Kwok, senior vp, Asia/Pacific & Middle East. “We are confident that this additional investment will enable Scotiabank to continue to add strategic value that will generate strong financial returns.”

IE