Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Reportedly, the board of the National Broadcasting and Telecommunications Commission (NBTC), Thailand's telco regulator, has called for a more detailed analysis of the deal’s impact on competition, consumers and industry. </li>
<li>This follows recent calls by Thailand’s opposition Move Forward party <a href="https://www.thaipbsworld.com/nbtc-board-urged-to-ditch-true-dtac-merger-plan/" target="_blank" rel="noopener">urging</a> the NBTC to block <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>'s merger.</li>
<li>Both DTAC and True are trading tight to terms - especially True. Time to take down borrow.</li>
</ul>


Reportedly, the board of the National Broadcasting and Telecommunications Commission (NBTC), Thailand's telco regulator, has called for a more detailed analysis of the deal’s impact on competition, consumers and industry. 
This follows recent calls by Thailand’s opposition Move Forward party urging the NBTC to block Total Access Communication (DTAC TB) / True Corp Pcl (TRUE TB)'s merger.
Both DTAC and True are trading tight to terms - especially True. Time to take down borrow.


True/​​​DTAC: Merger Support Increasingly Tenuous

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>
<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

<ul>
<li>Silchester's effort to raise awareness in <a href="https://www.smartkarma.com/entities/chugoku-bank-ltd" target="_blank" data-smartkarma-citation="entities:11177:1" rel="noopener">Chugoku Bank (8382 JP)</a> failed. Still, if you had a basket of regional bank longs and shorts, Chugoku would be in the short basket. </li>
<li>Dye &amp; Durham reloads a higher Offer after <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration (LNK AU)</a>'s rejection. This probably still needs a (small) bump in terms to get up. </li>
<li>
<a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a>is trading at a significant discount to its SOTP. A part of its Fintech segment (Rakuten Bank) could be worth ~50% of total market cap.</li>
</ul>


Silchester's effort to raise awareness in Chugoku Bank (8382 JP) failed. Still, if you had a basket of regional bank longs and shorts, Chugoku would be in the short basket. 
Dye &amp; Durham reloads a higher Offer after Link Administration (LNK AU)'s rejection. This probably still needs a (small) bump in terms to get up. 

Rakuten Inc (4755 JP)is trading at a significant discount to its SOTP. A part of its Fintech segment (Rakuten Bank) could be worth ~50% of total market cap.


Last Week in Event SPACE: Chugoku Bank, Link Admin, Rakuten, Tassal, Pipedo

<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

Total Access Communication / Event-Driven

<ul>
<li>Press reports (<a href="https://www.nationthailand.com/in-focus/40016835" target="_blank" rel="noopener">here</a> and <a href="https://www.thaipbsworld.com/court-rejects-petition-to-delay-merger-of-dtac-and-true/" target="_blank" rel="noopener">here</a>) suggest that Administrative Court has ruled out the request to suspend the DTAC/True merger and that the regulation which repeals NBTC’s veto rights is lawful.</li>
<li>This development suggests that the NBTC will apply remedial conditions rather than block the merger. The timeline for the satisfaction of VTO conditions is from late June to early August. </li>
<li>With the Court ruling increasing the probability of a successful merger, it is attractive to buy the current share price ratio of 9.698x vs the implied swap ratio of 10.221x.</li>
</ul>


Press reports (here and here) suggest that Administrative Court has ruled out the request to suspend the DTAC/True merger and that the regulation which repeals NBTC’s veto rights is lawful.
This development suggests that the NBTC will apply remedial conditions rather than block the merger. The timeline for the satisfaction of VTO conditions is from late June to early August. 
With the Court ruling increasing the probability of a successful merger, it is attractive to buy the current share price ratio of 9.698x vs the implied swap ratio of 10.221x.


DTAC/True Merger: Administrative Court Ruling a Positive

Thailand

Advanced Info Service Public Company Limited is granted a 25-year concession expiring the year 2015 by the Telephone Organization of Thailand to provide cellular phone services.  The Company provides analog mobile phone services through the Nordic Mobile Telephone (NMT900) network, and digital phone services through the Global Systems for Mobile Communication (GSM) network.

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Advanced Info Service (ADVANC-R TB)

True/DTAC: Merger Support Increasingly Tenuous

IF the deal breaks, DTAC could be the unwanted orphan with ~20% market share. For that, I'd be looking to go short on DTAC. I'd tilt short True...

David Blennerhassett

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

Last Week in Event SPACE: Chugoku Bank, Link Admin, Rakuten, Tassal, Pipedo

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

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

DTAC/True Merger: Administrative Court Ruling a Positive

With the Court ruling increasing the probability of a successful merger, it is attractive to buy the current share price ratio of 9.698x vs the...

Arun George

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True/​​​DTAC: Merger Support Increasingly Tenuous

IF the deal breaks, DTAC could be the unwanted orphan with ~20% market share. For that, I'd be looking to go short on DTAC. I'd tilt short True...

David Blennerhassett

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

Last Week in Event SPACE: Chugoku Bank, Link Admin, Rakuten, Tassal, Pipedo

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

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

DTAC/True Merger: Administrative Court Ruling a Positive

With the Court ruling increasing the probability of a successful merger, it is attractive to buy the current share price ratio of 9.698x vs the...

Arun George

True/DTAC: Merger Support Increasingly Tenuous