SCBx Group moves its mothership strategy forward by announcing SCBS’ acquisition of Bitkub to partner in laying the groundwork for digital asset business
2nd November 2021, Bangkok, Thailand – Aiming to continuously move forward to achieve long-term growth and lay a strong foundation for future financial business in response to a rapidly changing global context, the SCBx Group has embarked on another important strategic move for its SCBX mothership. The group recently announced investment in Thailand’s leading digital asset exchange Bitkub Online Company Limited, widely known as Bitkub, by acquiring 51% of Bitkub’s total shares from Bitkub Capital Group Holdings Co., Ltd. worth approximately 17.85 billion baht in total. Under the deal, SCB Securities Co., Ltd. (SCBS) will become Bitkub’s major shareholder and will be responsible for driving and engaging closely with the company as a business partner in building a business and digital asset ecosystem whereby digital asset exchange will become one of the nation’s key infrastructure segments to achieve further strength and growth.
The Transaction will be subject to compliance with rules and regulations of the relevant regulatory authorities, such as the Bank of Thailand and the Office of the Securities and Exchange Commission, and will be conditional upon the satisfaction in material respects with the results of the due diligence and the parties’ fulfillment of all conditions specified in the share purchase agreement. The Transaction is expected to be completed by the first quarter of 2022.
In announcing the news, SCBx CEO and Chairman of the Executive Committee Arthid Nanthawithaya said, “Digital asset exchange has rapidly gained popularity over the past few years and will grow even further in the long term. SCBx Group’s investment in Bitkub, well-known as Thailand’s reliable digital asset trading platform with a record of outstanding growth, will help the SCBx Group create new growth value in the long term amid a new financial world. The move is in line with SCBx Group’s strategy to upgrade to a financial technology group, meeting new consumer needs and entering a new competitive arena that will emerge very quickly in the next three to five years.”
SCBx Group’s investment in Bitkub will be engineered through SCBS purchasing 51% of Thailand’s leading digital asset exchange Bitkub Online Co., Ltd.’s ordinary shares from Bitkub Capital Group Holdings Co., Ltd. and becoming its major shareholder. The deal is expected to reach approximately 17.85 billion baht in total value. Apart from the investment, SCBx Group plans to work closely with Bitkub as a business partner, developing digital asset businesses through new business models to create long-term added value and lay the foundation for further entry into the financial world of the future.
Bitkub Capital Group Holdings Co., Ltd. Group CEO and Founder Jirayut Srupsrisopa added, “Bitkub has reached a milestone by becoming an important part of Thailand’s digital economy infrastructure. Bitkub is no longer just a startup and is now becoming a necessary part of the infrastructure critical for Thailand’s financial industry 3.0. Having brought Bitkub to a very important turning point, we needed to elevate Bitkub to the global level, so we turned to a strong partner like SCB to help us achieve our target faster and more sustainably.”
“SCB is a financial institution that has supported the Thai people for over 114 years. To support new business growth, SCB has undertaken a major strategic move to reorganize its structure and transform into the SCBx Group. The most important thing is that Bitkub and SCBx share a common goal and vision with regard to the importance of digital assets for the country and the Thai people in the long-term. We strongly believe that together we can drive the Thai economy into the future to be a regional financial and technological center. And it is an important opportunity to create a new National Champion for Thailand,” added Mr. Jirayut.
“For this collaboration, the “SCBx Group” represented by SCBS, will acquire 51% (17.85 billion baht) of Bitkub shares from Bitkub Capital Group Holdings Co., Ltd. whose total market capitalization is worth 35 billion baht in total, marking another Thai “unicorn” that will bring great pride to the Thai people.” Mr. Jirayut concluded.
PR Team, Siam Commercial Bank PCL.
Piyaporn Thipsoonthornsak Tel: 087-442-6564 e-mail: [email protected]