IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

Total Access Communication / Event-Driven

<ul>
<li>The <a href="https://www.bangkokpost.com/business/2396261/nbtc-has-no-authority-to-approve-or-reject-telecom-merger" target="_blank" rel="noopener">press reports</a> that the Council of State has stated that the regulator, NBTC, can only prescribe measures to govern the <a href="https://www.smartkarma.com/entities/total-access-communication" target="_blank" data-smartkarma-citation="entities:948:1" rel="noopener">Total Access Communication (DTAC TB)</a>/<a href="https://www.smartkarma.com/entities/true-corp-pcl" target="_blank" data-smartkarma-citation="entities:8:1" rel="noopener">True Corp Pcl (TRUE TB)</a> merger.</li>
<li>The Council of State decree paves the way for the merger to complete and the launch of the VTOs. The NBTC remedial measures will likely focus on consumer protection measures.</li>
<li>The current share price ratio is 9.150x vs the swap ratio of 10.221x. At last close, DTAC and True’s gross spread to the VTO price is 4.4% and 1.8%, respectively.</li>
</ul>


The press reports that the Council of State has stated that the regulator, NBTC, can only prescribe measures to govern the Total Access Communication (DTAC TB)/True Corp Pcl (TRUE TB) merger.
The Council of State decree paves the way for the merger to complete and the launch of the VTOs. The NBTC remedial measures will likely focus on consumer protection measures.
The current share price ratio is 9.150x vs the swap ratio of 10.221x. At last close, DTAC and True’s gross spread to the VTO price is 4.4% and 1.8%, respectively.


DTAC/True Merger: Council of State’s Decree Paves the Way for Completion

<ul>
<li>The <a href="https://www.bangkokpost.com/business/2385783/nbtc-preps-mega-merger-measures" target="_blank" rel="noopener">Bangkok Post reports</a> that the Thai regulator (NBTC) will propose ten remedial measures to approve the <a href="https://www.smartkarma.com/entities/total-access-communication" target="_blank" data-smartkarma-citation="entities:948:1" rel="noopener">Total Access Communication (DTAC TB)</a>/<a href="https://www.smartkarma.com/entities/true-corp-pcl" target="_blank" data-smartkarma-citation="entities:8:1" rel="noopener">True Corp Pcl (TRUE TB)</a> merger.</li>
<li>The NBTC board is not expected to issue a final decision as it waits for an interpretation by the Council of State if it can approve or reject the merger.</li>
<li>The current share price ratio is 9.511x vs the swap ratio of 10.221x. At last close, DTAC and True’s gross spread to the VTO price is 9.2% and 10.7%, respectively.</li>
</ul>


The Bangkok Post reports that the Thai regulator (NBTC) will propose ten remedial measures to approve the Total Access Communication (DTAC TB)/True Corp Pcl (TRUE TB) merger.
The NBTC board is not expected to issue a final decision as it waits for an interpretation by the Council of State if it can approve or reject the merger.
The current share price ratio is 9.511x vs the swap ratio of 10.221x. At last close, DTAC and True’s gross spread to the VTO price is 9.2% and 10.7%, respectively.


DTAC/​True Merger: NBTC Likely to Set Measures to Approve Merger

<ul>
<li>On 22 June, <a href="https://www.smartkarma.com/entities/axiata-group-berhad" target="_blank" data-smartkarma-citation="entities:944:1" rel="noopener">Axiata Group (AXIATA MK)</a> and <a href="https://www.smartkarma.com/entities/xl-axiata-tbk-pt" target="_blank" data-smartkarma-citation="entities:15028:1" rel="noopener">XL Axiata (EXCL IJ)</a> completed the acquisition of a combined 63.45% interest in <a href="https://www.smartkarma.com/entities/link-net-tbk-pt" target="_blank" data-smartkarma-citation="entities:1050:1" rel="noopener">Link Net (LINK IJ)</a> for approximately RM2.63 billion (IDR8.72 trillion).</li>
<li>Today, Axiata announced that the mandatory tender offer (MTO) runs from 30 August to 28 September. The MTO price is IDR4,800 with no minimum acceptance condition.</li>
<li>At the current price of IDR4,740 per share, the gross and annualised spread for a mid-October payment is 1.3% and 9.1%, respectively.</li>
</ul>


On 22 June, Axiata Group (AXIATA MK) and XL Axiata (EXCL IJ) completed the acquisition of a combined 63.45% interest in Link Net (LINK IJ) for approximately RM2.63 billion (IDR8.72 trillion).
Today, Axiata announced that the mandatory tender offer (MTO) runs from 30 August to 28 September. The MTO price is IDR4,800 with no minimum acceptance condition.
At the current price of IDR4,740 per share, the gross and annualised spread for a mid-October payment is 1.3% and 9.1%, respectively.


Link Net’s MTO of IDR4,800 from Axiata Open from 30 August

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Manila Electric Company / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jg-summit-holdings-inc" target="_blank" data-smartkarma-citation="entities:15747:1" rel="noopener">JG Summit Holdings (JGS PM)</a> aims to raise around US$185m via selling 2.5% of <a href="https://www.smartkarma.com/entities/manila-electric-company" target="_blank" data-smartkarma-citation="entities:3527:1" rel="noopener">Manila Electric Company (MER PM)</a> (Meralco) via a block trade.</li>
<li>This appears to be the first selldown by JG Summit and doesn’t appear to have been very well flagged either.</li>
<li>In this note, we will talk about the deal dynamics and  run the deal through our ECM framework.</li>
</ul>



JG Summit Holdings (JGS PM) aims to raise around US$185m via selling 2.5% of Manila Electric Company (MER PM) (Meralco) via a block trade.
This appears to be the first selldown by JG Summit and doesn’t appear to have been very well flagged either.
In this note, we will talk about the deal dynamics and  run the deal through our ECM framework.


Manila Electric Block - Selldown by One of the Largest Shareholders

<ul>
<li>
<a href="https://www.smartkarma.com/entities/total-access-communication" target="_blank" data-smartkarma-citation="entities:948:1" rel="noopener">Total Access Communication (DTAC TB)</a> and <a href="https://www.smartkarma.com/entities/true-corp-pcl" target="_blank" data-smartkarma-citation="entities:8:1" rel="noopener">True Corp Pcl (TRUE TB)</a> shares declined as <a href="https://www.bangkokbiznews.com/tech/1016819" target="_blank" rel="noopener">reports suggest</a> that NBTC’s subcommittees voted 3:1 AGAINST the merger. True said the reports <a href="https://classic.set.or.th/set/pdfnews.do?newsId=16584462215240&amp;sequence=0" target="_blank" rel="noopener">are false</a>.</li>
<li>An earlier press conference by CP Group and <a href="https://www.smartkarma.com/entities/telenor-asa" target="_blank" data-smartkarma-citation="entities:22258:1" rel="noopener">Telenor ASA (TEL NO)</a> reiterated that the NBTC could only prescribe remedial measures. A court ruling on 16 June supports this view.</li>
<li>NBTC will allegedly review the subcommittees’ findings on 26-27 July. We think this development results in the NBTC prescribing harsher remedial conditions to the merger rather than blocking it. </li>
</ul>



Total Access Communication (DTAC TB) and True Corp Pcl (TRUE TB) shares declined as reports suggest that NBTC’s subcommittees voted 3:1 AGAINST the merger. True said the reports are false.
An earlier press conference by CP Group and Telenor ASA (TEL NO) reiterated that the NBTC could only prescribe remedial measures. A court ruling on 16 June supports this view.
NBTC will allegedly review the subcommittees’ findings on 26-27 July. We think this development results in the NBTC prescribing harsher remedial conditions to the merger rather than blocking it. 


DTAC/True Merger: Shares Decline on Noise About NBTC Subcommittees Voting Decision

Philippines

PLDT Inc. is a telecommunications and digital services provider. The company offers fixed line, wireless, and fiber optic communication technology services in The Philippines.

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PLDT (TEL PM)

DTAC/True Merger: Council of State’s Decree Paves the Way for Completion

The NBTC remedial measures will likely focus on consumer protection measures. It is attractive to buy the current price ratio of 9.150x as it is a...

Arun George

DTAC/True Merger: NBTC Likely to Set Measures to Approve Merger

Reports suggest that the NBTC will propose ten measures to approve the merger. At the last close, DTAC and True’s gross spread to the VTO price is...

Arun George

Link Net’s MTO of IDR4,800 from Axiata Open from 30 August

The MTO of IDR4,800 per share runs from 30 August to 28 September. At the current price of IDR4,740 per share, the annualised spread for a mid...

Arun George

Manila Electric Block - Selldown by One of the Largest Shareholders

JG Summit Holdings (JGS PM) aims to raise around US$185m via selling 2.5% of Manila Electric Company (MER PM) (Meralco) via a block trade.

Sumeet Singh

DTAC/True Merger: Shares Decline on Noise About NBTC Subcommittees Voting Decision

We think this development results in the NBTC prescribing harsher conditions to the merger rather than blocking it. Due to high volatility on...

Arun George

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DTAC/True Merger: Council of State’s Decree Paves the Way for Completion

The NBTC remedial measures will likely focus on consumer protection measures. It is attractive to buy the current price ratio of 9.150x as it is a...

Arun George

DTAC/​True Merger: NBTC Likely to Set Measures to Approve Merger

Reports suggest that the NBTC will propose ten measures to approve the merger. At the last close, DTAC and True’s gross spread to the VTO price is...

Arun George

Link Net’s MTO of IDR4,800 from Axiata Open from 30 August

The MTO of IDR4,800 per share runs from 30 August to 28 September. At the current price of IDR4,740 per share, the annualised spread for a mid...

Arun George

Manila Electric Block - Selldown by One of the Largest Shareholders

JG Summit Holdings (JGS PM) aims to raise around US$185m via selling 2.5% of Manila Electric Company (MER PM) (Meralco) via a block trade.

Sumeet Singh

DTAC/True Merger: Shares Decline on Noise About NBTC Subcommittees Voting Decision

We think this development results in the NBTC prescribing harsher conditions to the merger rather than blocking it. Due to high volatility on...

Arun George

DTAC/True Merger: NBTC Likely to Set Measures to Approve Merger