Allianz has acquired a 19.21% stake in Thailand's Sri Ayudhya Capital (AUYD) to become its largest shareholder, the German insurer and asset manager announced.
On Tuesday, AYUD informed the Stock Exchange of Thailand that Allianz had made a tender offer to buy 56.93 million shares at 53.32 baht each, totalling 3.04bn baht ($95m).
As part of the deal, AYUD will be renamed Allianz Ayudhya Capital Pcl and its subsidiary Sri Ayudhya General Insurance will be renamed Allianz Ayudhya General Insurance Pcl.
These moves reflect the strategic efforts we are making across Asia and we look ahead with confidence"
"The closer relationship between both businesses will increase collaboration and expertise, and deliver an improved customer proposition in the country. These moves reflect the strategic efforts we are making across Asia and we look ahead with confidence," Allianz Asia Pacific's deputy regional CEO Solmaz Altin said in a statement.
Thailand is an important and strategic market for Allianz Asia, with strong potential due to its low insurance penetration as well as robust macroeconomic prospects, Allianz said. Allianz and AYUD's partnership goes back almost 20 years, and currently serves more than 1 million customers across the country.
Under the new structure, Bryan Smith has been appointed as the President and CEO of Allianz Ayudhya Capital and Country Manager of Allianz Thailand, overseeing the overall business in Thailand.
He also remains President and CEO of Allianz Ayudhya Assurance while Lars Heibutzki has been named the president and CEO of Allianz Ayudhya General Insurance.
"The expanded partnership is a huge win for local customers and secures Allianz's future growth in Thailand. We are now in a stronger position to deliver more comprehensive protection solutions under the Allianz Ayudhya banner. Today is a game changer for local customers and the insurance sector in Thailand," said Smith.
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