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
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
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...
SYS-CON Events announced today that StarNet Communications 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. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
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 ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...