Bangkok--10 Apr--MT Multimedia
DIF Set for 3rd Additional Investment in Telecom Infrastructure Assets Planning Public Offering of up to 3,831 Million New Investment Units At Preliminary Price Range of 13.60-13.90 Baht Per Unit Elevating Thailand to Become Digital Society, Corresponding with Thailand 4.0 Policy
In a significant move that will raise Thailand to a full-fledged digital society corresponding with the Thailand 4.0 policy, the Digital Telecommunications Infrastructure Fund (DIF) is set for its first capital increase, raising equity of not more than 53,237 million baht by issuing a total of no more than 3,831 million of new investment units in a Public Offering to eligible existing unitholders and new investors, at a preliminary price range of 13.60-13.90 baht per unit.
The new funds will be mobilized to invest in telecommunications infrastructure assets to support the growing demand for internet, smart phone and broadband services as well as to help drive Thailand into a full-fledged digital society. The new investments will increase the diversity of the assets and enhance telecommunications coverage in all parts of Thailand.
Mr. Smith Banomyong, Chief Executive Officer of SCB Asset Management Co. Ltd., fund manager of DIF, stated that DIF has decided on the first capital increase, raising equity of not more than 53,237 million baht by issuing not more than 3,831 million of new investment units in accordance with the third additional investment which was approved by the DIF unit holders on November 23, 2017.
Noting that DIF is the first and largest telecommunications infrastructure fund in this country, Mr. Smith said this first capital increase will help develop the telecommunications infrastructure in Thailand in order to support the growing demand for internet, smart phone and broadband services which results from the changes to use the 4G, and LTE platforms now as well as 5G in the future.
He added that the expanded telecommunications infrastructure will help drive Thailand towards a full-fledged digital society which corresponds with the Government's Thailand 4.0 policy. It will also support the Ministry of Digital Economy and Society's target to develop the country's broadband networks to raise the public's accessibility from 27% in 2014 to no less than 95% in 2020.
Miss Veena Lertnimitr, EVP - Primary Distribution Division, Siam Commercial Bank PLC, Sole Financial Advisor, Sole Global Coordinator, Joint Bookrunners and Joint Lead Underwriters, said the draft filing and prospectus for the public offering has recently been approved by the Securities and Exchange Commission (SEC).
According to Miss Veena, the offering has a preliminary price range of 13.60-13.90 baht per unit and a certain portion of the total offering units will be offered to eligible existing unitholders who hold units before the first XB date on April 12 (given the record date being set for April 17) at the ratio of 2.0911 old units for 1 new unit. Meanwhile the subsequent PO to the general public will be allocated on a "Small Lot First" basis.
Proceeds from this capital increase will be used to invest in the following assets:
1. Ownership of 2,589 telecommunications towers for mobile phone services,
2. Ownership of 252,006 core kilometers of fiber optic cables (FOC) for mobile phone services in upcountry provinces,
3. Ownership of 117,871 core kilometers of FOC for mobile phone and internet services in Bangkok Metropolitan Area,
4. Ownership of 220,428 core kilometers of FOC to support the FTTx system for internet and broadband internet services in upcountry provinces, and
5. 30-year leasehold for 619,986 core kilometers of FOC to support the FTTx system for internet and broadband services in Bangkok Metropolitan Area with a call option to purchase the FOC networks at the exercise price of 1,300 million baht.
Mr. Prasert Deejongkit, Senior Vice President and Manager, Bangkok Bank PLC, said the subscription period for eligible existing unit holders will be from May 2-8, while the subscription period for the general public is from May 2-11 (excluding public holidays) at all SCB branches and BBL branches (except micro branches) as well as all KTB branches nationwide.
Those who subscribe to new units will have to make payment at the top-end of the preliminary price range, or 13.90 baht per unit, while the final offering price, expected on May 14 at the earliest, will be determined after institutional investors' book-building. In the case where the final price is lower than 13.90 baht per unit and/or subscribers are not allocated parts or all of their subscriptions, investors will be refunded within 7 days via bank transfer or within 10 working days [As stated in the prospectus in case of refunding of the subscription payment for unallocated new investment units] if refunds are made by cheques or cashier cheques, from the last day of the subscription period.
Mr. Prasert expressed confidence that the expanded DIF will carry stronger growth potential due to its more diverse telecommunications infrastructure assets that will enable more extensive telecommunications services to the public in all areas which correspond with the industry prospects of continuous growth. "All these make the (expanded) DIF more interesting," he said.
Mr. Ekkapob Makeguljai, Executive Vice President and Team Leader, Market Sales and Product Solutions Team, Financial and Capital Market Business Division, Krung Thai Bank PLC, said after completion of this third additional investment, DIF's investment portfolio will comprise of ownership and the rights to receive net revenue from 15,271 telecommunication towers serving all available frequencies as well as ownership, long-term leases and the rights to receive net revenue from approximately 2.6 million core-kilometers of FOC plus ownership in 1.2 million ports of broadband systems in upcountry provinces.
"These will increase the diversity of the assets and accommodate the demand for more usage nationwide," Mr. Ekkapob said. They will also lengthen DIF's average lease period to about 20 years, which in effect will enable DIF to recognize more revenue and generate respectable returns for investors in the long run.