Sri Ayudhya Capital shares surge on Allianz
SHARES of investment holding company Sri Ayudhya Capital Plc (Ayud) surged by 9.03 per cent yesterday, closing at Bt42.25 per share after Allianz Group made a tender offer for its shares.
According to Sri Ayudhya Capital’s statement to the Stock Exchange of Thailand yesterday, Allianz SE will make a voluntary partial tender offer for 56.93 million Ayud shares, accounting for 19.37 per cent of total Ayud shares, at Bt53.32 apiece.
Sri Ayudhya Capital’s existing shareholders Bangkok Broadcasting & TV Co Ltd, BBTV Equity and Great Fortune Equity Ltd informed they would offer no less than 40 million Ayud shares to Allianz.
The voluntary partial tender offer does not aim to delist Ayud from the exchange. Asia Plus Securities has been appointed as independent adviser for the deal. Sri Ayudhya Capital will hold a second extraordinary shareholders’ meeting on November 13.
Sri Ayudhya Capital’s board of directors has given the nod to the business synergy plan with Allianz Group, said Virojn Srethapramotaya, the company’s president and chief executive officer, in its statement to the SET. Ayud’s share price soared to Bt46 at yesterday’s opening from its previous close of Bt38, hitting a high of 47.75 before ending the day at Bt42.25.
The plan starts with Ayud’s wholly-owned non-life insurance subsidiary Sri Ayudhya General Insurance Plc (SAGI) acquiring the entire stake of Allianz General Insurance Plc (AZTH) – a member of Allianz Group – for Bt748.8 million to lower the former’s operating costs, enhance customer base and expand distribution channels, Virojn said in the statement to the SET.
Under the plan, Ayud will acquire life insurer Allianz Ayudhya Insurance Plc (AZAY)’s 34.81 million shares or 11.80 per cent of its paid-up shares at Bt114 apiece from Allianz SE and an affiliate of Allianz CPRN (Thailand) Co Ltd (CPRNT) for Bt3.97 billion. After the planned acquisition, Ayud’s holding in AZAY will rise to 31.97 per cent.
After raising its registered capital from Bt375 million to Bt463.47 million through issuance of 88.47 million new shares or 23.14 per cent of total shares at par value of Bt1 apiece, Ayud will offer 14.04 million new shares to CPRNT at Bt53.32 apiece costing Bt748.80 million. CPRNT will pay for the shares in cash. Ayud will use the proceeds from this part of the capital increase to subscribe to new shares of SAGI, which will later acquire the entire business of AZTH.
Ayud will place the remaining 74.42 million new shares to Allianz SE and CPRNT for Bt3.97 billion in exchange for AZAY’s common shares.
