Welcome!

News Feed Item

New Acquisition Supports Group Lease (SET:GL) Aggressive Expansion



Bangkok, June 18, 2014 - (ACN Newswire) - SET-listed motorcycle leasing firm Group Lease Pcl (SET:GL) has taken over one of the leading leasing companies, Tanaban, belonging to the Thai Credit Retail Bank, in a strategic acquisition that will raise its total outstanding portfolio by more than 30% to about 6.2 billion Baht.

GL's takeover of Tanaban, which is also enhancing existing motorcycle leasing plus "motorcycle for cash" and "used motorcycle finance", has come at a crucial timing as the company's main business in Thailand is turning around in light of the rapid economic recovery following last month's military coup, while its operations in Cambodia are also expanding aggressively.

"This is an important strategic takeover that will support our long-term growth," GL's chairman and chief executive officer Mitsuji Konoshita stated today (June 18) at an official ceremony at the Stock Exchange of Thailand where he signed the SSPA to acquire Tanaban with senior executives of Thai Retail Credit Bank.

GL in effect will take over Tanaban's outstanding loans portfolio of about 1.5 billion Baht, which comprises mainly of motorcycle leasing plus "motorcycle for cash" and "used motorcycle finance". Adding that to GL's existing portfolio of about 4.7 billion Baht, the deal will push GL's total portfolio to about 6.2 billion Baht.

Mr. Konoshita maintained that the deal represents a win-win transaction for both parties. The Thai Credit Retail Bank was able to dispose of a non-core asset while GL not only could enhance its main portfolio of motorcycle leasing but would now also be able to use Tanaban's operating systems and clients network to expand into the potentially more lucrative other finance business.

From GL's standpoint, the acquisition of Tanaban marks a giant step forward in its aggressive growth strategy. "Normally you would have to invest quite a lot in building up a portfolio this size," Mr. Konoshita stated. "But in this case, we manage to take over Tanaban's 1.5 billion Baht portfolio in one single exercise without any cost."

One extra benefit for GL is a new window of opportunity to expand into the motorcycle for cash and used motorcycle finance business in the provinces by using Tanaban's operating systems and existing network of clients and also their dealer networks.

GL had reported a substantial decline in net profits in the first quarter this year due to high provisions for bad and doubtful debts which were necessitated by late payments by clients owing to the politics-induced economic slowdown.

Mr. Konoshita noted that the performance of the company will improve dramatically as the surrounding environment has changed in a new direction that benefits GL. Last month's military takeover has marked a turning point which has changed GL's fundamentals for the better since the National Council for Peace and Order (NCPO)'s swift action to revive the grassroots economy would directly advantage GL's clients base.

The GL chief expressed confidence that the company's performance will improve significantly in the second half this year not just because of the improved market conditions but also because of the extra positive impact from the acquisition of Tanaban.

The two parties have also agreed to offer generous treatment for all of Tanaban's 400-plus staffs who will be fully welcomed by GL.

Meanwhile, the TCRB has adopted a new strategy to grow as a niche player bank focusing on small business and micro segment in Thailand since late 2012. Since then the portfolio of our Small Business segment has been growing rapidly within just over one year period. The bank also continue to grow its people and branches nationwide to expand the business.

TCRB owns 99.9% of the shares of TNB, and with this acquisition TCRB will sell all the shares of TNB to GL. This transaction is a good opportunity for TCRB to maintain its focus on our core business.

K. Winyou Chaiyawan, the CEO of Thai Credit Retail bank mentioned that this transaction will bring two highly competitive motorcycle financing businesses in the market together, creating an even stronger positioning and better future for the business. We believe that this acquisition and merger of TNB is a good potential for our customers, dealers and employees to grow. We believe that GL will be able to bring this business to the next level.

K. Winyou also mentioned that TNB asset is about 5% of the total TCRB asset. The divestment has minimal impact to the bank balance sheet. Our shareholders consider this as a good opportunity for us to divest TNB and to maintain our focus on Small Business Segments.

TNB has been in the market for more than 30 years with deep relationship with the dealers and focusing on new motorcycle financing business, with portfolio size of about 1.5 billion Baht. TCRB assets is currently about 27 billion Baht.

About Group Lease Pcl (GL)

Group Lease Public Company Limited was established on 6th May 1986 and listed on the Stock Exchange of Thailand in 2004 (SET:GL). In 2007, APF group has become major shareholder by holding around 65% of total shares. The company has expertise in hire-purchase of motorcycles as it has been in the motorcycle leasing business for over 20 years. The motorcycle brands for financing include Honda, Yamaha, Suzuki, Kawasaki. In 2012, GL has announced a long-term business plan to become the leading finance company in the Southeast Asian region. In order to do so, the Company has acquired Group Lease Holdings Pte., Ltd. (GLH), a Singapore holding company, as a headquarters for its expansion plan in other countries. For more information, please visit www.grouplease.co.th.

Source: Group Lease Pcl (GL)

Contact:
Orn-anong ("Fah") Pattaravejkul
Tel: +66-2-612-2081 ext. 129 
Mobile: +66-86-884-4458
E-mail: [email protected] 
Website: www.mtmultimedia.com




Copyright 2014 ACN Newswire. All rights reserved.

More Stories By ACN Newswire

Copyright 2008 ACN Newswire. All rights reserved. Republication or redistribution of ACN Newswire content is expressly prohibited without the prior written consent of ACN Newswire. ACN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...