TAH2

Siam Inter Multimedia Public Company Limited (SMM) has turned from a company worth a billion baht in market value to a ten-billion baht company in a blink of an eye after SMM offered private placement (PP) of not exceeding 22,500,000,000 newly issued ordinary shares at the par value of ฿1.00/share at the offering price of ฿0.60/share, totaling ฿13,500,000,000 (from 323.21 million shares previously). The allocation was given to 1) Team A Holding 2 Co., Ltd. (TAH2) for 21,500 million shares. 2) Mr. Rewin Petaibunlue for 666.7 million shares. 3) Mr. Nattapong Sitaworarat for 333.3 million shares. The first portion of 21,500 million shares to TAH2 was a payment for the entire business transfer transaction worth ฿12,900 million which was the operation in production and distribution of electric wire and cable, and the copper rolling business as well. Thus, TAH2 will become the major shareholder of SMM at 94.2% stake in an exchange for the entire business transfer. For easier understanding, all the transfer processes were to open a path for TAH2 to make a Backdoor Listing. The second portion amounted one billion shares would be allotted to two individuals for ฿600 million. SMM would use it to settle the existing debt amounted ฿450 million, while saving ฿150 million as fund flow and for business expansion. Now, here comes the highlight of this capital increase. After the completion of this capital increase, SMM will transform into a company with ฿21,823 million authorized capital instantly! (increased from ฿323 million authorized capital previously). Its asset will increase from ฿876 million to ฿11,642 million, while the revenue averaging ฿300-฿400 million will increase to ฿7,500-฿7,600 million (according to TAH2’s consolidated financial statement.) SMM originally has a total of ฿697 million of debt. The allotment of ฿450 million (from capital increase) will lower its debt to ฿247 million. The market cap of SMM had increased from ฿280-290 million to ฿900 million with a tendency to go over ฿1,000 million, while the trading value of SMM shares also increased from an averaging of ฿0.88-฿0.90/share to ฿2.80/share. In addition, SMM’s core business will shift from book business and multimedia business to producing and distributing electric wire and cable, and the copper rolling business instead. As for SMM’s shareholders, this transaction may have had created 100% dilution effect, but in exchange of acquiring approximately 100% asset, the deal is considered worthy. It is believed that after the completion of this process, the outcome will be more vivid. Lastly, the question regarding how attractive the current SMM’s share price is. Let’s be frank, “just keep calm and hold your horses”