Equity Analysis /
Thailand

Siam Commercial Bank PCL/The: Bitkub deal nixed—good or bad news?

  • What now? (What is our new YE22 target price?)

  • Options for entering digital asset exchange space?

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Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

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Bualuang Securities
26 August 2022

Yesterday, SCB Securities Co Ltd (SCBS, a subsidiary of SCB) announced that it has decided against buying a 51% stake in Bitkub. We see this as good news that should boost sentiment, as the market had become concerned about planned the deal and its pricing (the price appeared high, given that crypto-trading has slumped in recent months).

What’s new?

Yesterday, SCB Securities Co Ltd (SCBS) announced that it had decided against investing in Bitkub Online Co Ltd (Bitkub). The stated reason is that Bitkub is currently in the process of resolving issues brought up by the Thai SEC. The timeframe for resolving those issues is uncertain. During the past several months, SCB and SCBS conducted a due diligence inquiry into Bitkub; the inquiry did not raise any notable red flags.