Jay Mart in process of forming asset management JV with KBANK

JMT Network Services (JMT), a bad debts collection service provider, confirmed on Wednesday it is establishing an asset management joint venture with one of Thailand’s largest lenders Kasikornbank (KBANK).

“The company is still in the process of discussing with partners, but no formal decision has been reached,” JMT secretary Wongsakorn Kittitrakulkarn said in a statement.

JMT is a subsidiary of Jay Mart (JMART), a holding company whose primary business is IT retail stores.

The statement was made in response to a report from Kao Hoon, a tabloid newspaper, on the forming of the JV and reports that KBANK will be selling its bad debts to JMT. 

JMT will hold around 65-75 per cent stake while the rest will belong to KBANK, it said. 

“Though JMT has a higher stake in the JV, the profit-sharing must take into consideration that KBANK is the financier of the bad debt purchase,” Maybank Kim Eng analyst Maria Lapiz said in a note. 

Analysts at KTB Securities are also bullish on this joint venture agreement. “The JV will be very efficient given JMT is a large asset management company with experience.”

“JMT and KBANK used to have bad debt transactions in the past, which will reduce the chances of conflict and allow them to negotiate at a reasonable price,” the analysts added. 

KTB rated ‘Buy’ on both KBANK and JMT at the target price of 168 and 65 baht, respectively. 

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During the morning session, JMT peaked at 62.50 baht, up 10.62 per cent from its prior closing, before settling at 58 baht, while KBANK traded at 148 baht, up 0.34 per cent. 

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