Krung Thai Bank considers selling stake in Nok Air
Nok Airlines shareholder Krung Thai Bank (KTB) is considering selling its 10% stake in the LCC, as part of the bank’s policy of divesting non-core businesses (Bangkok Post, 11-Aug-2010). Thai Airways, which has a 39% majority stake in the carrier, previously proposed to purchase the stake from KTB. KTB plans to review Nok’s revised business plan and competitiveness before making a final decision. It will also assess the selling price relative to Nok’s book value and discounted cash flow.
Krung Thai Bank: “Importantly, if we decide to sell the stake, it will be more due to the fact that the airline is a non-core business rather than because of Thai Tiger. We are concerned about overlapping management in Nok and Thai Tiger, as they both have the same major shareholder,” Apisak Tantivorawong, President. Source: Bangkok Post, 11-Aug-2010.