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
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Imagine having the ability to leverage all of your current technology and to be able to compose it into one resource pool. Now imagine, as your business grows, not having to deploy a complete new appliance to scale your infrastructure. Also imagine a true multi-cloud capability that allows live migration without any modification between cloud environments regardless of whether that cloud is your private cloud or your public AWS, Azure or Google instance. Now think of a world that is not locked i...
Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls "Bimodal IT," where business struggle to apply modern tools and practices to traditional monolithic applications. But these existing assets can be modernized and made more efficient without havin...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Auditwerx will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and attent...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...