Bangkok: The Bank of Thailand has clarified its stance on shareholding calculations, noting that its methodology differs from that of the Securities and Exchange Commission (SEC), particularly in the case of Gulf Energy Development's stake in Kasikornbank (KBank). The central bank emphasized that Gulf Energy Development holds less than 10% of KBank, aligning with its regulations.
According to Thai News Agency, the Bank of Thailand (BOT) highlighted the differences in shareholding calculation methodologies between itself and the SEC. The BOT calculates shareholding proportions based on the total number of issued shares, contrasting with the SEC's exclusion of shares sold and repurchased by KBank, known as Treasury Stock, in its calculations. The BOT reiterated that any stake exceeding 10% requires prior permission to prevent takeovers and ensure financial system stability.
Ms. Wipawin Phromboon, Assistant Governor of the Financial Institutions Policy Department, explained that Gulf Energy Development Public Company Limited's report to the SEC, indicating a 10.03% stake in KBank, differs due to these calculation discrepancies. Gulf's stake, according to the BOT's criteria, remains below the 10% threshold. Gulf Energy had initially reported its 5% shareholding to the BOT when it was acquired, adhering to the regulations.
The Financial Institutions Business Act mandates that holding more than 10% of a financial institution's total issued shares requires prior permission from the Bank of Thailand. This regulation aims to prevent potential takeovers and maintain the financial system's stability. The BOT allows stakes exceeding 10% only when necessary to enhance the stability or potential of the financial institution, for overall financial system stability, or when government agencies hold shares for general investment returns.