Thailand-based Siam Commercial Bank (SCB) has agreed to acquire a 51% stake in digital asset and cryptocurrency exchange Bitkub for THB 17,85 billion ($ 537 million).
Under the terms of the agreement, SCB Securities (SCBS) will purchase 51% of the common stock from Bitkub's parent organization, Bitkub Capital Group Holdings.
In addition to buying the shares, the company will also partner with Bitkub as a business partner in developing digital asset operations.
Bitkub Capital Group has a total market capitalization of THB 35 billion
The transaction is expected to close by the first quarter of 2022, subject to approval by regulators, including the Bank of Thailand and the Securities and Exchange Commission.
In addition, the acquisition is subject to the results of due diligence and the fulfillment of all conditions specified in the share purchase agreement.
Arthid Nanthawithaya, CEO of SCBx and chairman of the executive committee, said: "The exchange of digital assets has rapidly gained popularity in recent years and will grow further in the long term."
"The SCBx Group's investment in Bitkub, known as Thailand's trusted digital asset trading platform with an outstanding growth record, will help the SCBx Group create new long-term growth value in a new financial world."
"The move is in line with SCBx Group's strategy of moving to a financial technology group, meeting new consumer needs and entering a new competitive arena that will emerge very quickly over the next three to five years."
Thailand in the financial industry 3.0
SCBx said its investment in Bitkub is in line with its goal of becoming a financial technology group and helping to create new long-term growth value.
With the investment, the company aims to meet new consumer needs and enter a new competitive arena that is expected to emerge in the next three to five years.
SCB said it has taken strategic steps to reorganize its structure and transform itself into the SCBx Group, which has become the fourth largest lender in Thailand.
Bitkub Capital Group CEO and Founder Jirayut Srupsrisopa said, “Bitkub has achieved a milestone by becoming an important part of Thailand's digital economy infrastructure.
"Bitkub is no longer just a startup and is becoming a necessary part of the critical infrastructure for Thailand's 3.0 financial industry."
"Having brought Bitkub to a very important turning point, we needed to elevate Bitkub globally, so we turned to a strong partner like SCB to help us achieve our goal more quickly and sustainably."
