Thai Airways cancels plans to acquire Krung Thai Bank stake in Nok Air
Thai Airways has cancelled plans to acquire an additional 10% stake in Nok Air from Krung Thai Bank (KTB), as the bank’s asking price for the shares was too high (Bangkok Post, 02-Dec-2010). KTB reportedly asked for THB44 per share of its 5 million share stake, compared with the THB13 per share offered by Thai. KTB stated its proposed price reflected the true value of the carrier, after its significantly improved performance in 2009 suggests future growth potential. Nok expects to report a net profit of THB700 million this year, on THB3 billion in revenue. It expects a lower net profit of THB200 million in 2011, on THB 4 million in revenue, due to higher fuel costs.