On February 16, shares of Kasikornbank Public Company Limited (SET: KBANK) surged, reaching an intraday high of THB 201 before closing at THB 199, driven by high trading volume of THB 4,779 million. This rally followed the announcement that Gulf Development Public Company Limited (SET: GULF) had increased its stake in KBANK to roughly 10%, drawing significant investor attention to the strategic implications of this new major shareholder.
Sarath Ratanavadi, CEO of GULF, clarified that the company has no intention of taking over KBANK or appointing board representatives, despite the shareholding level allowing for such moves. GULF emphasized it will exercise its shareholder rights to monitor and ensure transparency in KBANK’s policies and management, aiming to protect and maximize returns for GULF shareholders.
Yupapin Wangviwat, GULF’s CFO, added that the acquisition, officially reported on February 13, brought GULF’s holdings to 10% of KBANK’s total voting rights, as calculated after deducting treasury shares. This disclosure complied with SEC rules. However, according to Bank of Thailand (BOT) regulations, GULF’s holding does not exceed 10% of KBANK’s total issued shares (which doesn’t deduct treasury stock) and therefore does not yet require BOT approval.
GULF has not coordinated with KBANK regarding management, policy, or operations, aligning with what KBANK has already stated publicly. The company reiterated its commitment to good corporate governance practices, stating it would not interfere in bank management or policy-setting, roles reserved for KBANK’s board and executives.
GULF, as a shareholder, receives information equally with other investors and has suggested that KBANK operate cautiously amid an uncertain economic environment. GULF will continue to exercise its rights to protect the interests of both KBANK and its own shareholders.
Meanwhile, Wipawin Promboon, Assistant Governor of the Financial Institutions Policy Group at the Bank of Thailand, explained that while GULF’s report to the SEC reflected a 10.03% stake—calculating from a share base that excludes treasury stock—the BOT uses a different calculation, using all issued shares.
According to BOT criteria, GULF’s holding in KBANK remains below the 10% threshold that would require regulatory approval. By law, any shareholding above 10% in a Thai financial institution must be pre-approved by the BOT to prevent undue influence, with exceptions made only for stability, strategic reasons, or investments by government agencies.
