Ayudhya Allianz CP Life to be given new name

Charoen Pokphand Group sold its entire stake in AACP in the |first quarter and booked profit from selling shares worth nearly Bt300 million, as the company wants to focus only on food and agribusiness.
The agribusiness conglomerate sold its shares – 2 per cent of total shareholding – to Sri Ayudhya Capital, while BAY reported to the Stock Exchange of Thailand early this month that it had sold its 8.50-per-cent stake in AACP to Sri Ayudhya Capital at Bt30 per share, totalling Bt 752.17 million.
AACP has submitted the new name and new logo to the Office of the Insurance Commission (OIC) and the Department of Business Development (DBD), and the process is expected to be completed this month, said Bryan Smith, president and chief executive officer of AACP.
AACP has to change the company name after CP sold its stake, he explained.
An insurance-industry source said the new name would be Allianz Ayudhya.
Smith said AACP would announce its financial performance for the first quarter next Tuesday, with more details about the new company’s name and business direction.
Smith said the company would not seek new partners, as Sri Ayudhya Capital plans to make additional investments in AACP.
He added that the exit of the two allies would not affect its business because the shareholding of CP and BAY was not much.
AACP last year reported revenue of Bt25.06 billion and net profit of Bt509 million.
An executive at BAY said the sale of its stake in AACP was due to concerns over capital reserve as per the regulations on capital adequacy ratio.
“Having shares in an insurance company might interfere with the calculation of capital reserve and that might compel the bank to increase capital,” the source said.
The bank will continue to sell AACP insurance products of through the bancassurance channel.