Kasikorn Securities (KS) noted that shares of Asia Aviation Public Company Limited (SET: AAV) soared as much as 12% during Tuesday’s morning session, driven by news surrounding a forthcoming tender offer. The share price is now up 8% as the session is drawing to a close.
Capital A, which holds a 41% stake in AAV, recently carried out an internal restructuring of its aviation segment, transferring assets to AirAsia X (AAX). Subsequent to this move, AAX sought an exemption from the Securities and Exchange Commission (SEC) for launching a tender offer, citing the internal nature of the reorganization. However, the SEC declined the exemption request.
As a result, AAX is now obligated to proceed with a tender offer. According to AAV, the tender offer price is anticipated to be disclosed in November, with the process expected to be finalized by December.
KS believes the recent share price rally likely reflects investor speculation about the potential tender offer pricing in November. The brokerage cautions investors to approach trading carefully under these conditions.
Looking ahead, KS forecasts that AAV will post a loss for the third quarter of 2025, attributing the outlook to a decline in tourist arrivals.
