The ICT sector – alleviating court concerns in DTAC/TRUE merger agreement

However, another obstacle regarding the terms of the NBTC, which would lead to a significant reduction in the value of synergy, remains unclear. Additionally, the lack of a tender offer price should limit the stock’s rally. We continue to view ADVANC as a safe investment in this segment.

There is no temporary protective order in case the NBTC recognizes the DTAC/TRUE merger agreement.

according to news reports in newspapers the Administrative Court rejected the petition rejected by the Council of Consumer Organisations. to apply for temporary protection in the case of the NBTC A decision recognized the business merger of DTAC and WWIR because the council did not want the merger process to take place before the court had a definitive ruling on the NBTC’s complaint against the NBTC in the merger case, filed on November 15, 2022,

one obstacle passed New obstacles have arrived.

the Administrative Court’s decision to refuse to grant a temporary protection order This means that the merger agreement between DTAC and TRUE can go ahead. We believe that the reason the court rejected the application was because the NBTC was not at fault in relation to the merger agreement. Getting a decision to recognize the business merger Rather than deciding whether it should be allowed or not, it is already a regulatory action, so the worry about the court’s decision in this case should be over. The next step that investors follow is the announcement of the merger conditions by the NBTC. We believe that the conditions imposed by the NBTC in October will reduce the synergy value from the merger. We will follow up on this matter. And will continue to update investors, but DTAC and TRUE remain confident that this deal should close within 1Q23.

We choose ADVANC as our best choice in this sector.

Although the rejection of the petition by the court will partially relieve the pressure on DTAC and TRUE, we think that the stocks of DTAC and TRUE will not perform well during this period because i) DTAC and TRUE do not offer a tender price , which will act as floor prices similar to the previous session ii) It remains uncertain how much synergy value DTAC and GWIR will generate when they comply with the conditions announced by the NBTC Therefore, we consider ADVANC a safe investment in this segment from two points of view, less concern about regulatory compliance. and stronger fundamentals