Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/advanced-info-service-pcl" target="_blank" data-smartkarma-citation="entities:947:1" rel="noopener">Advanced Info Service (ADVANC TB)</a> intends to acquire <a href="https://www.smartkarma.com/entities/jasmine-international-pcl" target="_blank" data-smartkarma-citation="entities:949:1" rel="noopener">Jasmine International PCL (JAS TB)</a> broadband ops (TTTBB) plus a 19% stake in <a href="https://www.smartkarma.com/entities/jasmine-broadband-internet-infrastructure-fund" target="_blank" data-smartkarma-citation="entities:86:1" rel="noopener">Jasmine Broadband Internet Infrastructure Fund (JASIF TB)</a> from JAS.</li>
<li>AIS will pay Bt 19.5bn for TTTBB and Bt 12.9bn for 19% of JASIF, or Bt 32.4bn (US$908mn) all in. The acquisition will be funded by debt.</li>
<li>The transactions, which are subject to NBTC approval, follow the ongoing regulatory process for <a href="https://www.smartkarma.com/entities/true-corp-pcl" target="_blank" data-smartkarma-citation="entities:8:1" rel="noopener">True (TRUE TB)</a> / <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>'s merger.  True is Thailand's largest broadband player. </li>
</ul>



Advanced Info Service (ADVANC TB) intends to acquire Jasmine International PCL (JAS TB) broadband ops (TTTBB) plus a 19% stake in Jasmine Broadband Internet Infrastructure Fund (JASIF TB) from JAS.
AIS will pay Bt 19.5bn for TTTBB and Bt 12.9bn for 19% of JASIF, or Bt 32.4bn (US$908mn) all in. The acquisition will be funded by debt.
The transactions, which are subject to NBTC approval, follow the ongoing regulatory process for True (TRUE TB) / Total Access Communication (DTAC TB)'s merger.  True is Thailand's largest broadband player. 


Jasmine Acquisition To Expand Advanced's Broadband Footprint

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.

<ul>
<li>The <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> EGM to approve the ordinary resolution relating to the proposed acquisition of <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> shares and the proposed MTO is on 26 May. </li>
<li>The proposed acquisition is targeted to be complete by 2Q and the subsequent MTO at IDR4,800 per share will complete by 3Q.</li>
<li>At the last close, the gross and annualised spread to the MTO price for a 3Q completion is 7.1% and 11.7%, respectively.</li>
</ul>


The Axiata Group (AXIATA MK) EGM to approve the ordinary resolution relating to the proposed acquisition of Link Net (LINK IJ) shares and the proposed MTO is on 26 May. 
The proposed acquisition is targeted to be complete by 2Q and the subsequent MTO at IDR4,800 per share will complete by 3Q.
At the last close, the gross and annualised spread to the MTO price for a 3Q completion is 7.1% and 11.7%, respectively.


Axiata’s EGM in Relation to the Link Net MTO Set for 26 May

<ul>
<li>
<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>’s two largest shareholders (66.03% of the outstanding shares) have signed a SPA to sell their stakes to Axiata Investments 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> at IDR4,800.</li>
<li>Post-Completion, Axiata Investments and XL Axiata will then be required to launch a mandatory tender offer to acquire the remaining 33.97% Link Net shares at IDR4,800 per share</li>
<li>The tender offer is expected to be completed in 3Q2022. At the last close price of IDR4,430, the shares are trading at an 8.4% gross spread to the offer.</li>
</ul>



Link Net (LINK IJ)’s two largest shareholders (66.03% of the outstanding shares) have signed a SPA to sell their stakes to Axiata Investments and XL Axiata (EXCL IJ) at IDR4,800.
Post-Completion, Axiata Investments and XL Axiata will then be required to launch a mandatory tender offer to acquire the remaining 33.97% Link Net shares at IDR4,800 per share
The tender offer is expected to be completed in 3Q2022. At the last close price of IDR4,430, the shares are trading at an 8.4% gross spread to the offer.


Link Net’s MTO from Axiata Investments and XL Axiata

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

The Stock Exchange of Thailand (SET) will announce the results of the semi-annual review of the SET50 index in June and the changes will be effective from 1 July 2020. Passive funds and index arb desks will need to trade at (or by) the close on 30 June 2020.We expect <a href="https://www.smartkarma.com/entities/ttw-pcl" target="_blank" rel="noopener" data-smartkarma-citation="entities:13100:1">TTW Pcl (TTW TB)</a> and <a href="https://www.smartkarma.com/entities/banpu-power-pcl" target="_blank" rel="noopener" data-smartkarma-citation="entities:23631:1">Banpu Power PCL (BPP TB)</a> will be included in the SET50 index replacing <a href="https://www.smartkarma.com/entities/banpu-public-co-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:15363:1">Banpu Public (BANPU TB)</a> and <a href="https://www.smartkarma.com/entities/wha-corp-pcl" target="_blank" rel="noopener" data-smartkarma-citation="entities:104:1">WHA Corp Pcl (WHA TB)</a>.This Insight covers the SET50 index methodology, our expected changes and the impact, the recent stock performance, and suggested trades for this rebalance.

The Stock Exchange of Thailand (SET) will announce the results of the semi-annual review of the SET50 index in June and the changes will be effective from 1 July 2020. Passive funds and index arb desks will need to trade at (or by) the close on 30 June 2020.We expect TTW Pcl (TTW TB) and Banpu Power PCL (BPP TB) will be included in the SET50 index replacing Banpu Public (BANPU TB) and WHA Corp Pcl (WHA TB).This Insight covers the SET50 index methodology, our expected changes and the impact, the recent stock performance, and suggested trades for this rebalance.

Asean-focused. Ex-Head of Thai Research

Athaporn Arayasantiparb, CFA

Asean (Thailand) Focused Independent Research

M Corp Review

M Corp is led by Athaporn Arayasantiparb who served as Head of Research for UOB and ANZ in Thailand and was an award-winning telecoms analyst at UBS in 2010 (AsiaMoney Thailand category) and Regional Strategist for DMG in Singapore. Prior to that, he also served as Kasikornbank credit analyst and scholar. He has a total work experience of 17 years, of which 14 were in research and 4 in research management roles. He started his career as an engineer for PTT and currently manages family investments. He holds an MBA from Stern (NYU) and CFA Charter since 2006. Apart from IPO Radar, which focuses on future listings, MCorp Review also provides six on-going thematic series ranked by frequency in descending order, namely: 1) Silicon Stories (technology) 2) Sathorn Series (financial services) 3) Thai-Coons (billionaire origin stories) 4) Reality Check (data-driven, investigative) 5) Thai Media Spotlight; and 6) Thai Macro Watch (global market drivers).

Equity Bottom-Up

Five interesting news flow/trend developments in corporate Thailand recently. Here goes:<ul>
<li>
SCB-GoJek alliance. Hot on the heels of KBANK's investment into Grab and their new e-wallet joint venture, SCB invests in Grab's Indonesian rival GoJek with similar terms. It looks like an uphill war for the latecomers though.    </li>
<li>
Rumors about an impending AIS-Jasmine merger. Given Jasmine's low share price and AIS Fiber's low market share in broadband Internet, conditions seem ripe for a deal, but we are quite cautious on this since not all rumors about Jasmine in the past actually panned out.</li>
<li>
Government attempts to lower train fares. The newly formed government has come up with vague campaign promises to limit skytrain (and possibly subway) fares to just Bt15/trip. If this comes in the form of subsidies, we suspect it could lead to an 8% upside for BTS.</li>
<li>
Policy for the poor. The government recently announced handouts worth Bt180,000 per kid, while the BOT will use debt service ratios to limit credit for the low-income groups.</li>
<li>
Political unrest erupts. A bombing at the country's tallest building and sequential fire events strains the relationship between the Army-dominated government and Thaksinite opposition. Not great for overall market sentiments.</li>
</ul>

Five interesting news flow/trend developments in corporate Thailand recently. Here goes:

SCB-GoJek alliance. Hot on the heels of KBANK's investment into Grab and their new e-wallet joint venture, SCB invests in Grab's Indonesian rival GoJek with similar terms. It looks like an uphill war for the latecomers though.    

Rumors about an impending AIS-Jasmine merger. Given Jasmine's low share price and AIS Fiber's low market share in broadband Internet, conditions seem ripe for a deal, but we are quite cautious on this since not all rumors about Jasmine in the past actually panned out.

Government attempts to lower train fares. The newly formed government has come up with vague campaign promises to limit skytrain (and possibly subway) fares to just Bt15/trip. If this comes in the form of subsidies, we suspect it could lead to an 8% upside for BTS.

Policy for the poor. The government recently announced handouts worth Bt180,000 per kid, while the BOT will use debt service ratios to limit credit for the low-income groups.

Political unrest erupts. A bombing at the country's tallest building and sequential fire events strains the relationship between the Army-dominated government and Thaksinite opposition. Not great for overall market sentiments.


Snippets #25: Ride Hailing Wars, Jasmine on The Block?

Thailand

Jasmine International Public Co. Ltd. is a holding company focused on investments in telecommunications, digital media, and technology. The company's core businesses include media and content, internet TV, digital assets, and technology solutions, such as generative AI, Bitcoin mining, telecommunication services, system integration, cloud computing, and ICT solutions. Jasmine International was founded in 1982 and is headquartered in Nonthaburi, Thailand.

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Jasmine International (JAS TB)

Jasmine Acquisition To Expand Advanced's Broadband Footprint

The spotlight has been on DTAC/True for most of this year. AIS is Thailand's largest mobile phone operator, and is looking to boost its subscriber...

David Blennerhassett

Axiata’s EGM in Relation to the Link Net MTO Set for 26 May

The proposed MTO at IDR4,800 per share will complete by 3Q. At the last close, the annualised spread to the MTO price for a 3Q completion is 11.7%.

Arun George

Link Net’s MTO from Axiata Investments and XL Axiata

The two largest shareholders have agreed to sell their stakes to Axiata Investments and XL Axiata at IDR4,800. Post completion, the two buyers will...

Arun George

SET50 Rebalance Preview: The Final Cut

The Stock Exchange of Thailand (SET) will announce the results of the semi-annual review of the SET50 index in June and the changes will be...

Brian Freitas

Snippets #25: Ride Hailing Wars, Jasmine on The Block?

Five interesting news flow/trend developments in corporate Thailand recently. Here goes: SCB-GoJek alliance. Hot on the heels of KBANK's...

Athaporn Arayasantiparb, CFA

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