Bangkok Insurance, one of Thailand’s leading general insurers, has established a holding company and is restructuring the group.
The restructuring process will involve the delisting of Bangkok Insurance’s ordinary shares from the Stock Exchange of Thailand (SET), a tender offer for the shares, the formation of a new holding company and the listing of the new holding company’s ordinary shares on the SET.
Thailand Property & Casualty
Bangkok Insurance, one of Thailand’s leading general insurers, has formed a holding company and is restructuring the group.
The restructuring process will involve delisting the ordinary shares of Bangkok Insurance from the Stock Exchange of Thailand (SET), making a public offer for the shares, establishing a new holding company and listing the ordinary shares of the new holding company on the SET.
To this end, BKI Holdings Public Company Limited or BKIH has been established to operate as an investment holding company. Bangkok Insurance will be a subsidiary of BKIH.
Bangkok Insurance has received shareholder approval for the restructuring, which is expected to be completed in the second quarter of 2024.
Objectives
The objectives of the restructuring are to enable BKIH to invest and hold stakes in insurance-related businesses, and to give it flexibility to invest in other businesses. This will increase long-term shareholder returns and improve the holding company’s competitiveness without affecting Bangkok Insurance’s Capital Adequacy Ratio (CAR), according to Discover Management Company, the independent financial advisor assisting with the restructuring.
Upon completion of the restructuring, Bangkok Insurance will continue to operate its non-life insurance business.
