CPALL

CPALL greenlights Siam Makro takeover — CPALL shareholders approved the Bt189bn acquisition of Siam Makro in the country’s biggest ever takeover. Some 87% of shareholders who attended the meeting yesterday voted for the proposal, more than the 75% required. (Bangkok Post, 13/06/13)

 Comment: No surprise here, great for CPALL as they need to Makro’s business to shore up their business moat especially with BIGC and TESCO moving to the smaller format stores

TRUE: Moody’s cuts debt rating outlook to negative. Moody’s Investors Service has affirmed the B2 corporate family rating of True Corporation and the B2 corporate family and senior unsecured bond ratings of True Move. But it has changed the outlook on all ratings to negative from stable due to TRUE’s deteriorating financial profile resulting from the need to invest in its 3G network and increased competition from AIS and DTAC, which have stronger financial profiles. This forces TRUE to front-load its capex to strengthen its 3G coverage to gain market share. (Source: Bloomberg)

Comment: Further confirmation this company is essentially bankrupt! Although they will somehow try to recap via an infrastructure fund and additional equity raising.