SCBX scraps THB17.8-billion deal for majority stake in Bitkub Online

Under a deal announced in November last year, SCBX’s subsidiary SCB Securities Co Ltd (SCBS) was to enter into a share purchase agreement for a 51 per cent stake in Bitkub Online Co Ltd from Bitkub Capital Group Holdings Co Ltd, with the total transaction valued at around 17.85 billion baht.

Under the deal, SCBS was to work with Bitkub as business partner to build a digital asset ecosystem that would include a digital asset exchange as one of the infrastructures at national level.

In the statement issued on Thursday, SCBX said: “During the due diligence exercise, the company and SCBS recognised the potential and talents of Bitkub group as well as foresaw many opportunities for cooperation in various areas in order to develop and improve the business operations of Bitkub.

“Whilst the results of the due diligence exercise did not reveal any significant abnormal issues which are irremediable, Bitkub is currently in the process of resolving various issues as per the recommendations and orders of the Securities and Exchange Commission of Thailand, which are uncertain in terms of timeframe in resolving those issues. As a result, the buyer and the seller have agreed to terminate the transaction.

“SCBX and SCBS remain committed to their strategic plans to expand into businesses relating to blockchain technology and digital assets, which will play an important role in Thailand’s economy and financial industry,” said the statement, signed by SCBX CEO Arthid Nanthawithaya.

On November 3 last year, after the deal was announced, Arthid had said investment in Bitkub Online would enable SCBX to create new value that can expand in the long term within the new world of digital asset exchange, and would help the company become a leading financial technology group in the region in the next 3-5 years.