The stock price movement of True Corporation Public Company Limited or TRUE and Total Access Communication Public Company Limited DTAC, the stock price has begun to recover. After yesterday, the share prices of both companies fell sharply. Upon learning of the news, Citrine Global Co., Ltd. and Citrine Venture SG Pte Ltd filed a voluntary declining tender offer for all of DTAC’s and True’s shares with conditions precedent.
Given the conditions precedent of the voluntary takeover bid The above was not completed within the term of 1 year from 20 November 2021, the day on which the party who communicated his intention communicated his intention to carry out a voluntary takeover bid. This morning, TRUE share price was priced at 4.64 baht, an increase of 0.87% and DTAC priceTo shareto 41.25 baht, an increase of 2.48%
Finansia Syrus Securities estimates the dealfusionof the latest DTAC-TRUE Announcement of cancellation of the Tender Offer process due to the conditions precedent of the Offer It has not been completed in one year since November 20, 2021, but continues to proceed with the planned merger process.
The above factors are the factors pushing the share price of DTAC-TRUE from the original price that the company had to make a takeover bid or tender offer to 47.76 baht and 5.09 baht respectively, acting as a strong support line. And we estimate that there’s a possibility that there isn’t a takeover bid again, while the expected recovery in Q4 performance is still not great.
Bualuang Securities disclosed this in the transaction. According to the rules and regulations of the Office of the Securities and Exchange Commission (SEC), if the conditions of the tender offer are unsuccessful or the period of 1 year has elapsed from the date of the public announcement that the tender offer will be made take over the business Prohibition of submitting a public purchase offer announcement for all the securities of this business for a period of 1 year from the date of submission of the public purchase offer rejection announcement.
Therefore, we estimate that the conditional voluntary takeover bid (VTO) process is unlikely to repeat itself for another year, suggesting that the merger process will skip. VTO to the process of buying shares from opposing shareholders and forming a new company The establishment of the new company will continue and should be completed within the first quarter of next year.
For this reason, TRUE and DTAC shareholders wishing to VTO will no longer be able to sell them back to Citrine Global Co., Ltd. and Citrine Venture SG Pte Ltd. and will be forced to hold shares in TRUE and DTAC in order to automatically trade in a new company (MergeCo). While this has a negative effect on the share price of both DTAC and TRUE, we do not consider the fundamentals of both TRUE and DTAC shares.
