Sri Ayudhya Capital Pcl (AYUD) yesterday requested a trading suspension of its shares on the Stock Exchange of Thailand (SET) because the company remains in the process of negotiating the terms and conditions of working with Allianz Group.
"As the process of disclosing major events may seriously affect shareholders' benefits, investor decisions, or a change in share price, the SET posted a suspend trading sign on Sri Ayudhya's securities on Nov 22 as requested [by the company]," the bourse said.
Sri Ayudhya Capital is an SET-listed insurance holding company.
The company invests in both life and non-life insurance companies. It holds a 20.17% stake in Alliance Ayudhya Assurance and 99.99% in Sri Ayudhya General Insurance.
Earlier the company's board of directors meeting held on Feb 27 had resolved to grant approval in principle for the company to consider cooperation in casualty insurance business in Thailand with the Allianz Group and appointed a working group to consider such cooperation.
"The company reports that its board met on Nov 21 and discussed details about the relevant contracts and agreements," Sri Ayudhya president and chief executive Arnon Opaspimoltum said in a filing with the SET.
"The board concluded that the cooperation with the Allianz Group has made significant progress.
"However, the company is in the process of negotiating significant conditions for relevant contracts and agreements with its contractual parties," Mr Arnon said. "The company anticipates reaching an agreement by Nov 22."