The Independent Financial Advisor published a report that deemed the acquisition of THCOM’s three orbital slots appropriate, while noting that shareholders should approve this asset acquisition transaction at the meeting.
The Board of Directors’ Meeting No. 4/2566 of Thaicom Public Company Limited (SET: THCOM), held on 10 February 2023, has resolved to hold the 2023 Annual General Meeting of Shareholders (AGM) on 7 April 2023 at 2:00 p.m. to approve that Space Tech Innovation Company Limited (STI), the company’s wholly owned subsidiary, 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 was the successful bidder of the auction organized by the National Broadcasting and Telecommunications Commission (NBTC).
This project will come to a total investment budget of no more than THB 15,203 million (excluding VAT), made up of (a) THB 797.43 million in license fees for the orbital slots at 119.5 degrees East, 120 degrees East, and 78.5 degrees East; and (b) USD 433.5 million, or THB 14,405.21 million, as investment costs for the satellites project for the 119.5 degrees East, for launching of the satellites into the orbit in order to maintain its license for that location, and for building a telemetry, tracking, command, and monitoring (TTC&M) and a traffic management station (Gateway Station) or any relevant matter (hereinafter referred to as the Satellite Project).
Krungthai XSpring Securities Company Limited, as THCOM’s Independent Financial Advisor or IFA, has an opinion that the objectives of the transaction are appropriate. Moreover, the IFA evaluated the investment budget of no more than THB 15,203 million (excluding VAT) in the Satellite Project from Project NPV and Project IRR methods.
The project NPV of this Satellite Project is between THB 1,210.46 – 2,322.20 million, and the project IRR of this Satellite Project is between 11.47% – 12.50% which is higher than the WACC of the Satellite Project at 10.00%. Based on the above results, the return of this Satellite Project is appropriate, and the company’s shareholders should approve this asset acquisition transaction.
