Bangkok Bank life insurer unit delays IPO -adviser
(For IPO diary and data, click on <TH/IPOMENU>
BANGKOK, Sept 22 (Reuters) - Bangkok Life Assurance PCL, an affiliate of Thailand's biggest lender, Bangkok Bank BBL.BK, has delayed an initial public offering planned this month due to the global financial crisis, its financial adviser said on Monday.
Foreign institutional investors may hesitate to buy the Thai IPO after Lehman Brothers' collapse and a U.S. government takeover of insurer American International Group (AIG.N), Akekajak Buahapakdee, senior vice president of Capital Nomura Securities, told Reuters.
"We had a discussion with our client and we have to postpone. Markets can accept the impact of the domestic political problem, but the fallout from Lehman and AIG is something that we don't know," Akekajak said.
The Thai insurer had planned to raise as much as 2.8 billion baht ($83 million) by selling 200 million new shares at a price range of 12.50-14.00 baht per share this month, and the proceeds would be used to fund expansion.
Akekajak said he hoped the insurer could have its IPO by the end of this year to enjoy a tax benefit from a listing.
Bangkok Bank and the founding Sophonpanich family will see their combined holding in Bangkok Life diluted to 39.9 percent after the IPO from 47.9 percent, the company has said.
Japan's biggest insurer, Nippon Life Insurance Co, would also see its holding in the Thai insurer diluted to 20.83 percent from 25 percent now. ($1=33.92 Baht) (Reporting by Wirat Buranakanokthanasan; Writing by Khettiya Jittapong; Editing by Alan Raybould)
