17-Jan-2011 10:38 AM

Krung Thai Bank to sell 4 million shares in Nok Air for THB30/share

Thai Airways Board of Directors stated Krung Thai Bank has agreed to sell its 5 million shares in Nok Air at TJB30 (USD 0.98 cents)/share, lowering the previous proposal from THB40/share (The Nation/Bangkok Post, 14-Jan-2011). The Board acknowledged the new proposal and allowed the management to proceed with the negotiation this week. Earlier, Thai Airways had proposed a sale price of THB13/share while KTB has proposed to sell the 10% stake for THB44/share. Thai Airways is seeking a larger stake in Nok Air to strengthen its controlling power in the LCC. The purchase would lift Thai's stake in Nok Air from 39% to 49% at a cost of THB150 million (USD4.9 million).