MAJOR Plunges 9% to Bt22.90 as Trading Price Already Recognized the SF-CPN Deal

The share price of MAJOR plunged ฿2.35/share or 9.31% to ฿22.90/share as of 10:23 local time in Thailand on July 6, 2021, with a trading value of 225 million baht.

 

Land and Houses Securities (LHS) has recommended investors to profit taking Major Cineplex Group Public Company Limited (MAJOR), stating that the current share price is already priced-in the deal with CPN.

LHS stated that the disposition of SF will result in a loss of profit sharing by 100 million baht per quarter, but MAJOR will receive cash flow from the disposition to sustain the business during Covid-19 outbreak.

The deal is expected to value-added MAJOR by Bt5.00, resulting in MAJOR to record a net profit in 3Q21 and in 2021. However, LHS stated that the current share price at ฿25.00/share has already priced-in the deal with CPN.

 

The Board of Directors of MAJOR on July 5, 2021, approved the disposition of SF in the amount of 647,158,471 shares or representing 30.36 percent of the total issued shares to CPN. MAJOR expected to realize post-tax gain from sale of SF shares of approximately THB 2,824 million.