DTAC and TRUE share prices climbed in anticipation of the merger’s approval at a shareholders meeting on 4 April.
In early Friday trading, the share price of Total Access Communication Public Company Limited (SET: DTAC) rose THB1.75/share or 3.55% to THB51.00/share, with a trading value of THB439 million.
Meanwhile, the share price of True Corporation Public Company Limited (SET: TRUE) rose THB0.15/share or 2.91% to THB5.30/share, with a trading value of THB890 million.
UOBKayHian Securities (Thailand) said that a bullish outlook in DTAC and TRUE shares on Friday reflected hopes for a joint shareholders’ meeting on 4 April, where the merger proposal and decision would be made.
Once the merger between DTAC and TRUE is completed, the combined enterprise value will equal Advanced Info Services Plc. (SET: ADVANC), boosting TRUE’s share price to THB5.50-6.00 from its current level of THB5.00 and DTAC’s share price to THB55.00-60.00 baht from its current level of THB50.00.
As part of the process of the amalgamation, there will be an allocation of shares in a new company which will be created as a result of the amalgamation (NewCo) to the shareholders of TRUE and DTAC in accordance with the following ratios: 1 existing share in TRUE to 0.60018 shares in NewCo; and 1 existing share in DTAC to 6.13444 shares in NewCo. NewCo’s registered and paid-up capital will be THB 138,208,403,204, divided into 34,552,100,801 ordinary shares, with a par value of THB4.00 each.
Kasikorn Securities stated in early March that it expects that in an Annual General Meeting of Shareholders on April 4, participants will approve the merger of DTAC and TRUE, which will create a THB5 billion per year accounting profit for the new company due to lower D&A expenses.
