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TUESDAY, December 06, 2022
nationthailand
Vote for the merger, financial advisers tell True, DTAC shareholders

Vote for the merger, financial advisers tell True, DTAC shareholders

MONDAY, March 21, 2022

The independent financial advisers of True Corporation and Total Access Communication (DTAC) have advised shareholders to vote in support of the merger of the two telecom companies next month.

The Kiatnakin Phatra Financial Group, advisers to True, and the Tisco Financial Group, which is advising DTAC, issued their assessment report in support of the merger.

Both advisers urged shareholders of the two public companies to back the merger during the general assemblies of shareholders on April 4.

Kiatnakin Phatra said in its report that the merger would benefit True shareholders due to increased gains from investments in future technologies and from a larger base of customers, increase in work efficiency and reduction in operation costs.

Kiatnakin Phatra added that the merger is aimed at restructuring the business and building the telecom company into a comprehensive technology organisation amid rapid change in technology, so that True and its telecom network would remain competitive.

Kiatnakin Phatra said in the report that a suitable share-swap ratio should be one True share for a 0.59714 to 0.62643 share in the new company.

Tisco said in its report that DTAC has a good reason and reasonable need to merge with True because the merger would help increase business potential and long-term growth.

The Tisco report said DTAC would stand to gain from the merger so the plan is reasonable.

Tisco told the shareholders that a DTAC share should be exchanged for 6.13444 shares in the new company.

Meanwhile, the KTBST SEC, an analyst firm, said in its report that the supportive views of the advisers would help push the deal forward and get a positive response from the market.

The KTBST SEC said DTAC’s profit is expected to grow 13 per cent to 17 per cent from 2021 to 2026 while True’s profit is expected to grow exponentially by 54 per cent to 157 per cent from 2022 to 2026.

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