Stocks in the news (advanc, bay, thai, ttcl) 24.06.13


AIS to bring curtain down on 2G service — ADVANC plans to end 2G mobile service after its concession expires in 2015, say executive chairman Somprasong. (Bangkok Post, 24/06/13)

Comment: Welcome to the world of tomorrow!

Mitsubishi: In talks to buy BAY. Japanese Mitsubishi UFJ is reported to be in the final stages of talks with GE and Rattanarak Family about the acquisition of 25% stake in BAY (being held by GE). According to the industry source (unnamed) the price could be close to Bt40 per share, or close to 1.9x P/B. (Source: Bangkok Post) Dow Jones Newswires quoted a source as saying that MUFG intends to first buy out GE Capital’s entire 25% stake in the Thai bank. It would then launch a tender offer for the remaining shares, but would seek to keep the other major shareholder, the Ratanarak family which holds 22%, as a partner, the Dow Jones report said. Reuters said that MUFG would then merge its Thailand operations with BAY, said the sources, who were not authorized to talk about the matter publicly.

Comment: It still remains unclear that the Japanese bank will be interested to buy a stake of more than 25% which will require the Japanese bank to tender for the remaining shares in the bank. According to the “one presence” rule, after the purchase, it will have to merge its Thai operation (Bank of Tokyo-Mitsubishi UFJ) with BAY.


Cabinet approves Thai Smile spin-off — The cabinet has approved a plan to establish Thai Smile Airways Co as a subsidiary of THAI. A source in the Transport Ministry said the spin-off was mainly aimed at boosting the operational efficiency and cutting losses for both airlines and the parent company. The source said operating Thai Smile as a separate company would reduce costs for the national airline and boost profits. Thai Smile, launched in July 2012, wold remain entirely owned by THAI. (Bangkok Post, 24/06/13)

Comment: Its always just a shame to never see this airline reach its fully potential, if there ever was an argument for private > public ownership this is it.


Toyo-Thai to raise Bt6.5bn for projects — TTCL plans to mobilize Bt6.5bn in the second half of this year to finance projects in Thailand and abroad. Hironobu Iriya, the president and CO, said he company will raise the capital through both equity and debt financing to support its transition from a mall EPC contractor to a regional medium-sized operator. (Bangkok Post, 22/06/13)

Comment: This company has grown remarkably well since its IPO a few years back and it will naturally be one of the beneficiaries from the governments spending plans.

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