OREANDA-NEWS. The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), a subsidiary of Mitsubishi UFJ Financial Group, Inc. (MUFG) integrated BTMU's Bangkok Branch (the former BTMU Bangkok Branch) with Bank of Ayudhya Public Company Limited (Krungsri), a consolidated subsidiary, today, with the necessary regulatory approvals and pursuant to the Conditional Branch Purchase Agreement that BTMU has signed with Krungsri on September 18, 2013.

1. Objectives and Strategic Rationale of the Transaction
After signing the Conditional Branch Purchase Agreement with Krungsri on September 18, 2013, BTMU has finally integrated the former BTMU Bangkok Branch with Krungsri, intending collaboration in various fields to maximize the strategic partnership with Krungsri and in compliance with the Bank of Thailand's One Presence Policy.

Recognizing that Krungsri's solid local franchise and BTMU's global expertise represent complementary strengths, the integration will enable the combined bank to deliver a full suite of high-value financial services, as a one-stop service, to a wide range of customers.

2. Transaction Summary
(1) Integration Structure
BTMU integrated the former BTMU Bangkok Branch with Krungsri through the contribution in kind of the former BTMU Bangkok Branch business to Krungsri. In exchange for the contribution in kind, Krungsri issued 1,281,618,026 common shares at THB 40.49 per share to BTMU. After the integration, BTMU holds 5,655,332,146 common shares in Krungsri, and the percentage of Krungsri's shares held by BTMU is 76.88%.

(2) Krungsri's succession to the functions of the former BTMU Bangkok Branch, and organization after the integration
(i) The former BTMU Bangkok Branch's over-the-counter services, deposits, and Thai domestic settlement services Krungsri Bangkok Sathorn Branch, which is newly established at the location of the former BTMU Bangkok Branch, will succeed to the handling of these services. The branch name of existing customers' accounts will be changed to Krungsri Bangkok Sathorn Branch.

(ii) Wholesale business of the former BTMU Bangkok Branch
Japanese Corporate/Multinational Corporate Banking Group, which is newly established at the location of the Krungsri Bangkok Sathorn Branch, will succeed to Japanese-affiliated corporate transactions, global corporate transactions, and major global financial institution transactions. The current relationship managers will in principle continue to handle the services.

Furthermore, Corporate Banking Group, which is newly established at the location of Krungsri Bangkok Sathorn Branch, will also succeed to Thailand-affiliated corporate transactions, with some exceptions, and the current relationship managers will continue to handle the services.

Dispatched staff to the former BTMU Bangkok Branch are Krungsri secondees from today and locally hired staff are transferred to Krungsri. They will engage in the above services.

(3) Positioning after the integration
After the integration, Krungsri will be MUFG/BTMU's only commercial banking platform in Thailand and will provide added-value through both Krungsri's business infrastructure/local network in Thailand and MUFG/BTMU's global network.

Specifically, we will enhance the settlement business and business matching by expanding Thailand's domestic network of Japanese-affiliated customers, and we will provide trade finance, overseas expansion support, etc. to local customers in Thailand by utilizing MUFG/BTMU's network.