Thailand Digest: AkzoNobel buys V.Powdertech; Ayudhya Capital, Allianz swap shares

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AkzoNobel has acquired a Thai powder coatings manufacturer to foster its leading position in Southeast Asia. Meanwhile, two non-life insurance firms Sri Ayudhya Capital Plc (AYUD) and Allianz Group have got into a share swap agreement.

AkzoNobel buys Thai powder coatings maker

Dutch paint maker AkzoNobel has agreed to acquire V.Powdertech, the Thai manufacturer of powder coatings, for an undisclosed sum. The acquisition will emphasise AkzoNonel’s position as one of the largest powder coating players in Southeast Asia.

The transaction includes all relevant technologies, patents and trademarks as well as a manufacturing facility in Samut Sakhon. Over 250 employees at V.Powdertech will also move to join AkzoNobel.

AkzoNobel, based in Amsterdam, operates four manufacturing sites in Thailand. It has one decorative plaints and packaging coatings plant in Bangkok and three plants for performance coatings in Nakhon Pathom, Rayong and a new site in Chonburi. However, it plans to shut down the plants in Nakhon Pathom and Rayong and shift the operations to the Chonburi plant by this year end.

Ayudhya Capital, Allianz swap shares

SET-listed Sri Ayudhya Capital Plc (AYUD) and Allianz Group have agreed to swap the shares under their umbrellas worth a combined 5.15 billion baht ($158.5 million) as a synergy to strengthen their non-life insurance business in Thailand.

Under the agreement, Sri Ayudhya General Insurance Pcl (SAGI), a subsidiary of AYUD, will acquire the entire business from Allianz General Insurance Pcl (AZTH).

Meanwhile, AYUD will increase its capital by issuing 96.5 million shares. Of these, 73 million shares worth 3.9 billion baht will be offered to Allianz and Allianz’s affiliate CPRN Thailand (CPRNT) for a 11.8 per cent stake in Allianz Ayudhya. The remaining 23.5 million shares will be sold to CPRNT for 1.25 billion baht, the company said in a filing to the Stock Exchange of Thailand.

The proceeds from selling the shares to CPRNT will be used to buy newly issued shares of SAGI, which will be used to fund its acquisition of AZTH. Once the transactions are completed, Allianz and CPRNT will together hold 40 per cent stakes in AYUD while AYUD will own 32 per cent stake in Allianz Ayudhya.

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