Management to Take Over Merrill Lynch Thai Operation by Year-End.

Byline: Nuntawun Polkuamdee

Aug. 1--A management buyout by executives of Merrill Lynch Phatra Securities is expected to be completed by the end of the year, according to chairman Banyong Pongpanich.

A memorandum of understanding for the share sale was signed between MLP executives and representatives of Kasikornbank and Merrill Lynch yesterday. MLP is 51 percent held by Merrill Lynch and 49 percent by Kasikornbank.

Shares in the brokerage, to be renamed Phatra Securities, will be purchased from the two major shareholders by existing management and staff, led by a core team of 20 people including Mr Banyong, chief executive officer Suvit Mapaisansin, and executive director Veravat Chutichetpong.

Mr Banyong said the final shareholding structure of the company would not be finalised for several months.

Payment and transfer of ownership will be completed by year-end. Whether new strategic partners would be brought in or not was also under discussion, but regardless, staff would hold at least a 50 percent stake.

The new Phatra Securities will continue to focus on MLP's core strengths in research, investment banking, private wealth management and advisory services. "Even without Kasikornbank or Merrill Lynch, we are confident that we can continue operations at the same high standard," Mr Banyong said.