And so he’s called off the tender offer and LH’s board has called off the EGM.
Reminder:
  • Initially he planned to make a voluntary tender for 10% of LH’s paid-up shares.
  • This was notified to the board on 21 June 2018.
  • The value was a maximum of THB 1.195 bn at THB 11.80/share
  • This was supposed to go to shareholders for approval on 7 August 2018
Why?
  • The Siam Commercial Bank Public Company Limited has cancelled the long term  credit facility, on the ground that Mr.Anant has not been able to agree in the increase of interest rate which is the material change in terms and conditions of the credit facility. As a result, Mr. Anant has not been able to agree in terms and conditions with the financial institution for the credit facility for the voluntary partial tender offer.
Source: SET
Thoughts:
  • An initial WTF comes to mind (no we never held any shares in LH)
  • I’m fairly certain there would’ve been several other financial institutions willing to provide a loan to Anant for this
  • Would a 50 bps change in rates really make that much of a difference?
  • Conspiracy theory – Perhaps too much noise in the past regarding that temple…
  • Who knows. In the end the excitement over this deal is over.
Share price impact:
  • Both LH (-6%) and QH (-7%) were driven down sharply today
Chart 1: LH 6M Chart
Chart 2: QH 6M Chart

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