BANGKOK, Dec 17 (Reuters) - Japan's Mitsubishi UFJ Financial Group (MUFG) will raise its holding in Thailand's fifth-largest lender Bank of Ayudhya PCL to 76.88 percent from 72 percent via a new share issue, the Thai bank said on Wednesday.
Bank of Ayudhya will offer 1.28 billion new shares to MUFG at 40.49 baht a share to raise about 51.9 billion baht ($1.57 billion), it said in a statement.
MUFG will hand over the business of its Bangkok branch to pay for the shares and the expected date of asset integration and share allotment has been set for January 5, 2015, it said.
The offer price represents a 5 percent discount to Wednesday's closing price at 42.50 baht.
$1 = 32.9600 Thai baht Reporting by Khettiya Jittapong; editing by Jason Neely