TMBThanachart received shareholders’ approval on dividend payment of 0.038 baht per share and the issuance of TTB-W1 to existing shareholders at no cost. The XD and XW dates are 21 April 2022.
TMBThanachart Bank Public Company Limited or TMBThanachart announced that in the 2022 Annual General Meeting (AGM) on 12 April 2022, the shareholders approved the Bank’s dividend payment of 0.038 baht per share and the issuance of TTB-W1 warrants to be allocated to existing shareholders at no cost. The XD and XW dates are 21 April 2022.
Mr. Piti Tantakasem, CEO of TMBThanachart, mentioned “The total dividend payment from 2021 operational performance is THB 3,672 million, equivalent to dividend payout ratio of 47% of net profit on bank-only basis, which increased from 34% in the previous year, or equivalent to 35% of net profit on consolidated basis. The Bank’s dividend payment is inline with the Bank of Thailand’s relaxed dividend payment guidance. Previously, dividend payment was capped at the past payout rate. Now it is lifted as the BOT deemed that commercial banks have strong financial position as they have prudently operated and also continued to build up provision and capital levels.
In addition, the shareholders approved the issuance of TTB-W1 warrant. The amount of TTB-W1 to be issued is up to 966,228,745 units or up to 1% of the paid-up shares of the Bank. The allocation ratio is 100 existing ordinary shares for 1 unit of warrant and the exercise ratio is 1 unit of warrant for a right to purchase 1 ordinary share at the exercise price of 0.95 baht.
After 21 April 2022 which is the XW date, the Bank will proceed further in order to allocate TTB-W1 to the entitled shareholders in May 2022. It is also expected that TTB-W1 will be traded in the Stock Exchange of Thailand in June 2022.
In terms of the exercise of TTB-W1, it can be made at every quarter end during 3-year period which is the term of the warrant. For more information, shareholders can contact Thanachart Securities at 0 2779 9000
Mr. Piti concluded “We believe that the issuance of TTB-W1 is beneficial and would help increase shareholders’ returns, especially when considering the exercise price of 0.95 baht per share and the current market price. And for the Bank, capital raising is not a key objective of this issuance as we currently have a solid level of capital position. Instead, we see it as an opportunity to explore alternative financial instruments which will allow us to have more options, adaptable to economic environment in order to optimize funding efficiency for future business expansion.”
