The Independent Financial Advisor (IFA) has published a report stating that the acquisition of Thaicom Public Company Limited’s (THCOM) three orbital slots is appropriate. The report further recommends that shareholders approve the asset acquisition transaction at the upcoming meeting.
At the Board of Directors’ Meeting No. 4/2566, held on February 10, 2023, THCOM resolved to convene the 2023 Annual General Meeting of Shareholders (AGM) on April 7, 2023, at 2:00 p.m. The meeting will seek approval for Space Tech Innovation Company Limited (STI), THCOM’s wholly owned subsidiary, to invest in a satellite project through the acquisition of licenses for the orbital slots at 119.5 degrees East, 120 degrees East, and 78.5 degrees East. STI successfully secured these slots in an auction organized by the National Broadcasting and Telecommunications Commission (NBTC).
The total investment for the project is set at a maximum of 15,203 million baht (excluding VAT). This includes 797.43 million baht in license fees for the orbital slots and an investment of 433.5 million USD (approximately 14,405.21 million baht) to develop the satellite project, launch satellites into orbit to maintain the license, and establish telemetry, tracking, command, and monitoring (TTC&M) systems, as well as a traffic management station (Gateway Station).
Krungthai XSpring Securities Company Limited, serving as THCOM’s Independent Financial Advisor, has reviewed the transaction and found the objectives appropriate. The IFA assessed the investment budget using the Project Net Present Value (NPV) and Project Internal Rate of Return (IRR) methods. The project NPV is estimated to range between 1,210.46 million and 2,322.20 million baht, while the project IRR is between 11.47% and 12.50%, exceeding the project’s Weighted Average Cost of Capital (WACC) of 10.00%.
Based on these results, the IFA has determined that the expected returns on the satellite project are reasonable and recommends that shareholders approve the acquisition at the upcoming AGM.
