JAS asks to amend JASIF contract after TTTBB faces liquidity problem By requesting a break from paying rent under the insurance contract From July 1, ready to cancel the rental income guarantee contract and extending the contract from Jan. 2012 to Dec. 2018, with a meeting of unitholders convened within 45 days.
report from Bualuang Asset Management Company Limited as the management company of Jasmine Broadband Internet Infrastructure Fund or JASIF notified the Stock Exchange of Thailand (SET) that Jasmine International Public Company Limited or JAS, as a unitholder in the fund, holds 19% of the total shares in the fund. Notify the management company that
1. TTTBB, the lessee of the assets from the Fund and a subsidiary of JAS, continuously encountered the problem of lack of liquidity as a result of the economic downturn. as well as changes in important factors The operator has gone from its original condition very much. We would like to inform you that from July 1, 2023, TTTBB can pay only the monthly rent according to the Amended and Restated Main Lease Agreement (worth 654.39 million baht), but it is not possible. and the ability to continue paying rent under the amended agreement. and in place of the Amended and Restated Rental Assurance Agreement (valued at 288.69 million baht) with the need to suspend rental payments under the insurance contract. from July 1, 2023 onwards, offering to compensate income to the fund
2. To solve problems arising from the economic situation and the broadband internet business that affects TTTBB and to enable the business to continue in order to have sufficient cash flow for liquidity management. and is able to continue to pay the rent to the Fund.
3. JAS has requested the management company to call a unitholders’ meeting of the fund within 45 days to consider the following matters:
3.1 Consider canceling (a) the Amended and Restated Rental Assurance Agreement and (b) the Amended and Restated Marketing Services Agreement. shall have the effect of canceling and suspending the payment under both agreements from the date on which the Unitholders’ Meeting resolves to approve them. and amend the mutual fund management project as necessary in order to Consistent with the resolution of the unitholders’ meeting
3.2 Consider amending the Amended and Restated Main Lease Agreement by extending the term of the Amended and Restated Main Lease Agreement from the original expiration date of 29 January 2032 to 31 December 2038 and fixing the rate rent From January 30, 2032 until December 31, 2032 will be 402.37 baht per core kilometer per month. However, the rental rate from January 1, 2033 until December 31, 2038 will be adjusted every January 1 of every year according to index change rate Consumer price (CPI) not more than 3% per year but not less than 0% per year
However, this amendment to the contract does not deprive the rights of the mutual fund. To exercise the right to renew the amendment agreement and replace the main lease agreement for another 10 years after January 29, 2032 if the revenue from broadband internet in respect of FTTX and xDSL service fees of TTTBB in 2030 according to the budget Total financial Not less than 40,000,000,000 baht according to the original terms of the said contract. and has entered into a new lease agreement with TTTBB, the written agreement of JAS on renewal specified in clause 3.2 above is terminated.
3.3 Consider a waiver of default on rental payment under the Amended and Restated Rental Assurance Agreement from the period of July 2023 (which will be due on July 17, 2023) until At the Unitholders’ Meeting The fund will not charge default interest. or claim any damages with the tenant due to default in payment of rent
TTTBB will pay the outstanding rent in 6 equal installments, starting from January 2024 onwards until June 2024, which will be paid on the due date of the main lease agreement.
In this regard, the Management Company is in the process of requesting additional information from relevant persons for preparation of the invitation letter. Extraordinary General Meeting of Unitholders Including proposing the above issues to the Investment Advisory Committee’s meeting for consideration.
Brokers are positive on ADVANC for the short term.
Innovative X Securities said that JAS would like to amend the JASIF rental structure agreement by canceling the rental income guarantee agreement. and extending the contract that originally expired on January 29, 2032 to December 31, 2038, looking for more opportunities to pass the shareholders’ meeting in this round than in the past As GULF’s stake in JAFIS is 4.25%, positive for ADVANC in the short term due to less pressure on post-merger earnings, but negative sentiment for JASIF due to lower dividends from lower revenue following new contract But in terms of target price, the impact will be limited. Because in exchange for a longer contract
2023-07-12 10:45:00
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