Finansia divests 89% ACL stake to large consortium

B600m deal cuts the fat and raises liquidity

The board of Finansia Syrus Securities’ (FSS) agreed to divest its 88.57% stake in ACL Securities (ACLS) to a group of investors including the chief executive of Country Group Securities (CGS), Prasit Srisuwan, in a deal worth up to 600 million baht.

The transaction, which has a minimum value of 530 million baht, is expected to be completed within three months, FSS said in a filing to the Stock Exchange of Thailand (SET) yesterday.

Other investors in the group are Akekachat Leelapanyalert, Tanarat Pasawongse, managing director of Hua Seng Heng Gold Futures, Pornpapat Nuttanadol, Decha Pangkum,Vuttipong Vongpatarakul and Sarita Watanachan.

After the transaction, a group led by Wiboon Permarayawong and other shareholders will retain its 11.03% and 0.40% shareholding, respectively, while FSS will no longer have a stake in ACLS.

Mr Prasit said he will continue working at CGS until the end of this year, but insisted he will not take a management position at ACLS.

He aims for ACLS to become a top 10 brokerage house the first year after the acquistion.

Mr Prasit’s clients now contribute around 3% of the total market trading value.

FSS plans to use proceeds from the share disposal to repay its subordinate loans and as revolving funds, it said.

‘‘The share sale allows us to reduce overlapping business operations and will increase the liquidity of the company,’’ said the board.

‘‘Additionally, the value of this transaction is higher than the book value, so the company can profit from an investment from 2009.’’

As of the end of March, according to financial statements reviewed by a licensed accountant, the book value of the assets to be disposed was 488.57 million baht, the company said.

ACLS operates a securities business and holds six licences: securities broker, securities dealer, debt securities dealer, investment advisor, securities underwriting and derivatives broker.

However, since April 2011, ACLS suspended its derivatives broker business.

ACLS recorded total income of 159.90 million baht in the first quarter this year and net profit of 7.59 million baht. However, it was still mired in an accumulated loss of 529.16 million baht.

The major revenues of ACLS derived from the securities brokerage business with 115.27 million baht for 2012 and 40.55 million for the first three months this year.

Shares of FSS stock fell 25 satang on the SET yesterday to 5.50 baht in trade worth 19 million baht.