CPAXT Merger Update: Analysis ‍by Kasikorn Securities

The CPAXT merger is expected to be completed by ‌early October,​ with shares ceasing​ trading for 9 business days from September 20 to October 2, 2024, and resuming trading on October 3, 2024, at a likely higher price level of 1.44% from today’s closing price.

Highlights

• CPAXT shares will be suspended from trading for ⁣9 business days to prepare for the allocation of the new company’s⁤ shares.
• The ⁤capital of⁣ the new company will ⁣be 10,427.6618 million baht at ‍a‍ par price of 1.0 baht/share.
• The conversion rate of CPAXT shares is equal to 0.9856 of the new​ company’s shares.

Investment Topics

Last Step

CPAXT and ‌Ek-Chai Distribution System Company Limited will hold a ‍joint shareholders meeting via electronic system on September 23, 2024, to consider various matters related to the merger.

After ⁤the‌ Merger

The new company’s shares will be allocated, and the share price is likely to increase by 1.44% based on ⁣the pro forma financial statement.

Tendency

We expect the financial performance of the new company to change slightly in the short ⁣term after the merger, but to benefit in the medium to long term by creating added value from merging about 1%⁣ of⁤ total​ sales or about⁣ 5 billion baht within the next 2-3 years.

Active‍ Update

CPAXT’s 3Q2024 same-store sales growth rate is in the‌ low single digits for ‍B2B and B2C businesses, driven ‌by online sales ‍and⁢ new product launches.

Valuation⁣ and Recommendation

Kasikorn Securities maintains its‌ target price at 38.00 baht, calculated using the ‌DCF ‍method, and recommends a “Buy” rating.