BFIT Securities may merge with UOB Kay Hian Holdings Ltd.

BFIT Securities BSEC.BK, Thailand’s second-largest stockbroker in terms of market share, has received a merger proposal from a Thai unit of Singapore’s UOB Kay Hian Holdings Ltd. The merger is expected to be concluded by the end of June and this would help UOB become one of the top five brokers in the Thai market.

Chaipat Narkmontanakum, co-chief executive of UOB Kay Hian Securities (Thailand) said, “Despite the gloomy outlook at the moment, we expect the Thai market to recover in the long run and we have positioned ourself so that we will be among the top five after the merger.”

Chaipat also rvealed that UOB would make a tender offer to buy BFIT stock from minority shareholders after the merger and would then delist BFIT from the market. This year BFIT has market share of 6.2 percent, which ranks it second after the market leader Kim Eng Securities KEST.BK. Shares in BFIT have jumped nearly 80 percent in the past month on speculation about the merger.

UOB Kay Hian said in a statement that the merger would involve BFIT’s existing business, assets and employees, but exclude all licences relating to securities businesses.