The movement of the stock price of True Corporation Public Company Limited or TRUE and Total Access Communication Public Company Limited DTAC, the stock price has started to recover. After yesterday, the stock prices of both companies dropped sharply. After learning of the news, Citrine Global Co., Ltd. and Citrine Venture SG Pte Ltd have filed a voluntary declining tender offer for all securities of DTAC and True with conditions precedent.
Due to the conditions precedent for the voluntary tender offer The aforementioned has not been completed within a time frame of 1 year from November 20, 2021, which is the day the person who announced his intention announced his intention to make a voluntary tender offer. In the morning today, the price of TRUE shares was priced at 4.64 baht, an increase of 0.87% and DTAC priceshareat 41.25 baht, an increase of 2.48%
Finansia Syrus Securities estimates that the dealmergerof the latest DTAC-TRUE Announcement to cancel the Voluntary Tender Offer process due to the conditions precedent of the Tender Offer It has not been completed in one year since Nov. 20, 2021, but continues to proceed with the planned merger process.
The aforementioned factors are the factors that pressure the share price of DTAC-TRUE from the original price that the company had to make a tender offer or tender offer at 47.76 baht and 5.09 baht respectively, acting as a strong support line. And we estimate that there is a chance that there will not be a tender offer once more, while the expected recovery in the fourth quarter performance is still not outstanding.
Bualuang Securities revealed that in the transaction. According to the rules and regulations of the Office of the Securities and Exchange Commission (SEC), if the conditions of the tender offer are unsuccessful or the period of 1 year has elapsed from the date of the public announcement that the tender offer will be made. to take over the business Prohibited from submitting a tender offer announcement for all securities of that business for a period of 1 year from the submission date of the tender offer rejection announcement.
Hence, we estimate that the conditional voluntary tender offer (VTO) process is unlikely to occur once more for another year, leading to the assumption that the merger process will skip. VTO to the process of buying shares from objecting shareholders and establishment of a new company The establishment of the new company will continue and is expected to be completed by the first quarter of next year.
For this reason, TRUE and DTAC shareholders who wish to do a VTO will no longer be able to sell them back to Citrine Global Co., Ltd. and Citrine Venture SG Pte Ltd. and will be forced to hold TRUE and DTAC shares in order to Automatically exchanged into a new company (MergeCo). Although this has a negative effect on the share price of both DTAC and TRUE, we do not consider the fundamentals of both TRUE and DTAC stocks.
