Malaysia's state sovereign fund Khazanah Nasional Bhd had offered to purchase General Electric's stake in Bank of Ayudhya. The interest of the utilities giant in the Thai bank amounts to US$1.8 billion, according to sources familiar with the matter.
The bid by Khazanah is a surprise move as there is a standing bid by Japan's Mitsubishi UFJ Financial Group. Should the purchase push through, the purchase would be the largest on record concluded by Khazanah. The Malaysian fund is second only to Temasek Holdings, with a portfolio one fourth the size of its Singaporean rival.
With the bid, there is a marked shift by Khazanah into markets dominated by Temasek. Previously, Khazanah was only participating in healthcare and real estate deals in Singapore and Turkey respectively.
The GE share owns 25.3% of the bank and is now conducting a divestiture plan of its non-core assets. On the other hand, Khazanah is on an acquiring spree, especially with insurance assets.
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