DIF Rebounds 2% as Analysts Expect No Fundamental Impact from TRUE’s Disposition

Digital Telecommunications Infrastructure Fund (DIF) yesterday (September 28) dropped 4.17% in anticipation of additional 6% disposal from TRUE following the selloff of 2.82% of DIF’s total issued units in June 2020 to hold approx. 26.08%. Analysts affirmed the possibility of the disposition as TRUE has once stated that it would hold a minimum 20% of DIF, causing the short-term price fluctuated, but the selloff would not affect DIF’s fundamentals, while the fund still returned a high dividend yield at 6.6%. Analysts gave DIF’s target price at ฿16.23/share.

 

As of 11:31 local time in Thailand, the share price of DIF rose ฿0.30/share or 2.17% to ฿14.10/share with a trading value of 145 million baht. 

 

The analysts said that it has yet to know the reason for DIF’s share price plummet yesterday, but stated the possibility of the additional disposition from True Corporation Public Company (TRUE). In June 2020, TRUE has disposed investment units DIF represents approximately 2.82% of total issued units to hold 26.18%.

 

TRUE once informed that the selloff of 300,000,000 investment units DIF was to certain investors whereas the selling price was determined through a book building process.

 

DIF announced through the Stock Exchange of Thailand on August 28, 2020 regarding Major Unitholders’ proportion, showing that TRUE remains as the first major unitholder with a 2,772,764,534 units hold or represented 26.08%.

 

Analysts further assessed that if it was not TRUE selloff then it could be the disposal from funds in preparation for the investment in SCG Packaging Public Company Limited (SCGP).

 

Kasikorn Securities released Equity Analysis on September 8, 2020, upgrading DIF’s rating to “BUY” with a target price of ฿16.23/share.