Thanachart is top bidder for Siam City stake

A person familiar with the deal said Thanachart offered $984.3 million for the SCIB's 47.6 percent stake.

The person said the small-sized Thanachart Bank offered to buy the stake at THB32.50 ($.98) per share, putting the value of the deal at THB32.67 billion ($984.3 million).

Long-considered the frontrunner in the bid, Thanachart Bank will now enter negotiations on the deal details with the Financial Institutions Development Fund, the person said.

Last year, Thanachart Bank said it would merge the two entities if it secured a majority stake in Siam City Bank, as reported in the Wall Street Journal.

Analysts said such a merger could create Thailand's fifth-largest bank by assets, and help diversify the two banks' loan portfolios. A majority of Thanachart's credit extension is in the hire purchase segment, while those of Siam City are in corporate and housing loans.