SINGAPORE/HONG KONG, Feb 23 (Reuters) - Canada's Bank of
Nova Scotia BNS.TO has approached a unit of Bank of China
601988.SS , Fubon Financial Holdings 2881.TW , Maybank
MBBM.KL and Japanese lenders to gauge interest for its $1.7
billion stake in Thai lender Thanachart, people familiar with
the matter said.
Scotiabank , as Bank of Nova Scotia is known, has hired
Morgan Stanley (N:MS) MS.N as adviser for the sale of its 49 percent
stake in Thanachart, which has been approaching the propective
bidders, they said. First-round bids for the sale are expected
in the second quarter, one of the sources said.
The Canadian lender, which announced in December it was
reviewing its Thanachart investment, wants to exit its retail
presence in Asia and focus mainly on corporate banking in the
region through a few key offices, one of the sources said.
Thanachart Capital Pcl TCAP.BK owns the remaining 51 percent
stake.
Scotiabank is the latest mid-sized Western player to rethink
its strategy in Asia in the face of headwinds from low growth in
China, depressed commodities prices and falling interest rates.
"No final decision has been made with respect to this
investment and no further update is available beyond what was
announced in December," Scotiabank spokesman Marcelo
Gomez-Wiuckstern said. Thanachart Bank declined to comment.
Bank of China's unit BOC HK 2388.HK is showing interest in
the stake, one of the sources said. Scotiabank's adviser has
approached Japanese lenders Mizuho Financial Group 8411.T and
Sumitomo Mitsui Banking Corp (SMBC), a unit of Sumitomo Mitsui
Financial Group 8316.T , the sources said. The sources declined
to be identified because the talks are not public.
Morgan Stanley did not respond to requests for comment. The
two Japanese banks, BOC Hong Kong, Maybank and Fubon all
declined to comment.