BANGKOK, Thailand, and TORONTO, July 18 /CNW/ - Scotiabank today
announced that it has secured regulatory approvals in both Thailand and Canada
and completed the acquisition of 24.99 per cent of Thanachart Bank, Thailand's
eighth-largest bank and leading automobile lender, for Bht7.1 billion
(approximately Cdn$225 million). Scotiabank purchased 156,501,200 shares from
Thanachart Capital and 276,975,500 new shares issued by Thanachart Bank at
Bht16.37 per share.
    "For more than a century, Scotiabank has recognized that unique
opportunities for growth can be found beyond Canada's borders," said Rob
Pitfield, Executive Vice President, International Banking for Scotiabank.
"This partnership with Thanachart builds on our solid track record of
strategic investments in high potential markets like Thailand."
    The transaction provides for proportionate Scotiabank representation on
the Thanachart board of directors, as well as strong participation in
Thanachart Bank management. Scotiabank's agreement also contains provisions to
increase its ownership stake to 49 per cent for an equivalent price by
December 31, 2007, should legislation allow, subject to a one-year extension
and further call rights for a four-year period thereafter.
    "The partnership between Thanachart Bank and Scotiabank leverages the
strengths of both of our institutions and is strengthened by our shared
commitment to the exciting potential of Thailand," said Banterng Tantivit,
Chairman of Thanachart Bank.
    "We view this transaction as a catalyst for future growth in Thailand's
attractive banking sector," said Michele Kwok, Senior Vice-President,
Asia-Pacific and the Middle East, Scotiabank. "Thanachart Bank is a strong
financial institution, with a very strong core business in the automobile
sector and a solid management team. We are confident Scotiabank will add
strategic value that will generate strong financial returns."
    With a young and growing population of 65 million people - twice the size
of Canada - Thailand is a sizeable developing market, with a Gross Domestic
Product of US$205 billion that is forecast to grow four-to-five per cent in
2007.
    Scotiabank has operated in Thailand since 1981, providing corporate,
trade finance and treasury services to local and international companies. In
compliance with Thailand's single presence rule, the assets of the Scotiabank
branch will be sold to Thanachart Bank and Scotia's Bangkok branch will be
closing.

    With about Bht257.47 billion (Cdn$9.1 billion) in assets and about 6,000
employees, Thanachart Bank has the fastest growing branch network among the
Top 10 banks in Thailand, with 150 branches and 260 automated teller machines
(ATMs) across the country. It is also the leading automobile lender in
Thailand with a 24 per cent market share for new autos. In addition, the Bank
provides a full range of financial services through subsidiaries in fund
management, brokerage activities, insurance and leasing.

    Scotiabank operates in 10 countries in the Asia-Pacific region, with
about 700 employees and 30 branches and offices. The bank primarily offers
corporate and commercial products and services, including loans, trade
finance, treasury, precious metals, foreign exchange and project and
transportation financing, correspondent banking, loan syndications, securities
investment and retail mortgage financing in selected countries.
    Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With more than 58,000 employees, Scotiabank
Group and its affiliates serve approximately 12 million customers in some 50
countries around the world. Scotiabank offers a diverse range of products and
services including personal, commercial, corporate and investment banking.
With $412 billion in assets (as at April 30, 2007), Scotiabank trades on the
Toronto (BNS) and New York Exchanges (BNS). For more information please visit
www.scotiabank.com.