The Independent Financial Advisor issued a report on Wednesday calling Sabuy Technology Pcl. (SET: SABUY)’s tender all securities, including warrants, of Asiasoft Corporation Pcl. (SET: AS) or now Asphere Innovations Pcl. (AS) for a total investment value of THB7,137 million, or at not exceeding THB18.5 per share, “appropriate” and recommending that shareholders should approve the transaction.
The March 30, 2023 Board of Directors’ Meeting of SABUY approved an investment in AS by making a conditional voluntary tender offer at a price of THB18.50 per share, including warrants to purchase the ordinary shares in AS No. 2 (AS-W2) at a price of THB15.00 per share (collectively referred to as AS securities) and/or to exercise the conversion right of AS-W2 at a price of THB3.50 per share.
As of the 29th of March, 2023, SABUY owned 125,861,258 ordinary shares of AS, or 24.84% of the number of paid-up shares.
AS is an online entertainment service provider and a leading online game operator in South East Asia. AS is the number one online game operator in Thailand and Singapore and the second largest online game operator in Malaysia and Vietnam and is currently providing 33 online game services in Thailand, Singapore, Malaysia, the Philippines, Vietnam, and Indonesia.
Avantgarde Capital, as SABUY’s Independent Financial Advisor or IFA, has an opinion that this investment opportunity allows SABUY to expand its business ecosystem by accessing a larger customer base and offering a wider range of products and services. Consequently, integrating the business ecosystems of both companies increases the potential for revenue growth and cash flow for both companies. It also provides opportunities for generating higher returns, asset growth, profitability, and continuous cash flow for the company and its shareholders in the long run.
In addition, acquiring all securities of AS represents an opportunity to invest in a business and industry with future growth potential, keeping up with technological and digital changes. The gaming market in the Southeast Asian region is projected to have consistent growth rates due to various factors. Apart from the impact of the COVID-19 pandemic, supportive factors for the gaming industry’s growth in this region include the growth of investments in internet infrastructure, such as 5G technology investments in 2020, and investments in wireless networks. Another contributing factor is the increasing popularity of diverse sports competitions, such as the emergence of eSports. AS, being a major player in the Southeast Asian market, is well-positioned to benefit from these trends.
Therefore, investing in AS is an investment in a business and industry with future growth potential, in line with technological and digital advancements.