The share price of Jasmine Broadband Internet Infrastructure Fund (JASIF) plunged more than 5% on Wednesday, moving in the negative territory for the second-straight day after the Independent Financial Advisor (IFA) voiced its opinion for shareholders to not approve the deal with Advanced Info Service Public Company Limited (SET: ADVANC) due to the risks it may carry.
JASIF closed the morning session on September 7, 2022, at THB7.95 per share, decreased THB0.45 or 5.36%. Yesterday, the share price of JASIF also dropped THB0.30 or 3.45% to close at THB8.40 per share.
On Monday, IFA had published its opinion on the disposal of Triple T Broadband Public Company Limited (TTTBB) and Jasmine Broadband Internet Infrastructure Fund (SET: JASIF) by Jasmine International Public Company Limited (SET: JAS or the company) to Advanced Info Service Public Company Limited (SET: ADVANC), seeing the transaction appropriated.
However, the advisor added that there are many uncontrollable factors which may have significant impacts on the returns of shareholders. Therefore, IFA is of the opinion that the Share Disposal Transaction and the Investment Unit Disposal Transaction is appropriate but carries a significant risk to the company’s shareholders. Therefore, IFA had the opinion that the shareholders should not approve the Share Disposal Transaction of TTTBB and the Investment Unit Disposal Transaction of JASIF with a total value of THB 32,420 million.
In the meantime, JAS after considering IFA’s opinion, announced that it will proceed to propose to the shareholders of JAS to consider and approve disposing of the business.
Maybank Securities (Thailand) (MST) has given a “Hold” recommendation on JASIF and cut target price at THB8.10 per share, expecting TTTBB to terminate the contract with JASIF in 2036 if the deal with ADVANC is successful.
The analyst estimated JASIF’s fair value of THB6.9 in case there is no contract extension after 2036, and THB8.20 if ADVANC requests for a discount.