So TRUE came out yesterday, surprising everyone except those with a modicum of common sense with another capital increase…

trueThe stock price didn’t react as badly as one may have thought, perhaps some punters are believing that it will wipe out the interest costs (again) and that the stock can raise back to thb 14 / share again.

Anyways the details of the RO are as follows…

  • 15 bn shares to be put up for shareholders approval @ the AGM on April 8
  • The price will be @ 0.9x the average price of 20 days prior to March 30
  • Management says that this THB 60 bn will reduce leverage ratios to a net debt/ebitda of 2x of which THB 40 bn will is used to pay back loans, and THB 20 bn to capex…
  • CP group is definitely on board for this, China mobile has to get HQ approval (how much do you want to bet that CP management is now in China begging?)
  • Edit: Forgot to comment that dilution is “only” 38% should every shareholder subscribe..
        • I would hope in a perfect world, JAS defaults, NBTC resets the auction price back to 16B, DTAC and AIS dukes it out for the license up to 40B before someone gives up. True gets a 36B discount on their license to 40B and then all 3 wait patiently for the 60Mhz of MCOT spectrum to be freed up in 2017 for re-auction on the cheap.

          But in reality, NBTC is demanding 75B for the re-auction price, True is on the hook for 76B, AIS and DTAC will drop out and wait for the MCOT spectrum in 2017.

          • imagine if…true sues the nbtc (just like they are whining with the digital tv stuff) and this entire saga drags on for the next few years?

  1. I wonder on what grounds True could sue the NBTC, surely they can’t sue them to try to stop future spectrum auctions can they?

    I don’t think NBTC has broken any of the auction terms, True just shot themselves in the foot bidding money they don’t have.

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