Kiatnakin Phatra Securities sees Plan B Media’s (SET: PLANB) acquisition of an 11.01% stake in COM7 as an accretive deal with strategic upside, affirming its BUY rating and target price of THB 7.30.
PLANB has finalized the acquisition, purchasing 263 million COM7 shares for a total of THB 7.2 billion. The transaction, approved by PLANB’s board in May and June 2026, was primarily financed through THB 5.8 billion in bank loans, with the remainder from cash, at a funding cost of 3.87%. This elevates PLANB to one of COM7’s top two shareholders.
Initially, Kiatnakin sees that PLANB will recognize the investment as dividend income, with a shift to equity income expected by the fourth quarter of 2026. PLANB is seeking two seats on COM7’s board, which, if approved, will expand the board from seven to nine directors and reinforce PLANB’s influence. Kiatnakin Phatra Securities is holding off on changes to its forecasts pending confirmation of these board positions.
The deal is anticipated to add meaningfully to PLANB’s profit and cash flow from late 2026 onwards, with dividend contributions set to turn positive from 2027. PLANB’s balance sheet remains robust, with a pro-forma net debt/EBITDA ratio at only around 0.6x. The current valuation is seen as reasonable, factoring in COM7’s high ROE, while potential strategic synergies from COM7’s nationwide retail network and EV7 transit media are not yet included in projections.
