Since the Voluntary Tender Offer (VTO) cancellation has no impact on TRUE’s fundamentals, we believe that the resulting share price tumble is a good TRADING BUY opportunity. Scope for the long-term upside will come from bigger-than-estimated Amalgamation synergies.
The cancellation of VTO process—no impact on TRUE fundamentals
Citrine Global Ltd and Citrine Venture SG Pte Ltd, which are jointly owned by Telenor and CP Group, have backtracked on their intention to carry out the Voluntary Tender Offer (VTO) to TRUE shareholders in compliance with the SEC’s tender offer regulations because the VTO process could not been completed within one year. Despite the VTO cancellation, TRUE and DTAC remain committed to the TRUE-DTAC Amalgamation which will proceed and is expected to be finalized within 1Q23. We remain confident that the entire Amalgamation process will be completed in 1Q23. The cancellation of the VTO process is a short-term negative sentiment to its share price but is irrelevant to its fundamentals.