Gulf Energy Development's (GULF) tender offer for InTouch Holding (INTUCH) shares has a chance to succeed as the market and tender prices are reportedly similar, says an analyst at Capital Nomura Securities (CNS).
Meanwhile, the tender offer for Advanced Info Service (ADVANC) is less likely to succeed because the price is below market value, said the analyst, who requested anonymity.
The analyst said GULF announced a tender offer for INTUCH at 65 baht per share from yesterday until Aug 4, and a tender offer for ADVANC at 120.93 baht per share from yesterday until Aug 13.
"GULF has a chance to succeed in purchasing INTUCH because the tender offer and the market price are similar," said the analyst. "Yet there is little chance for the tender offer for ADVANC shares because the price is much lower than the board's price."
The share price of ADVANC is about 170 baht, 42% higher than the tender offer.
CNS reiterated its "buy" recommendation for GULF in 2021 with a positive outlook. It expects GULF's earnings to grow at an average of 63% per year between 2021-2023.
The brokerage foresees revenues from INTUCH helping to decrease its price-to-earnings ratio sharply from around 90 times in 2020 to around 20 times in 2023.
GULF's power business remains attractive with continuous earnings growth over the next five years from the commercial start of operations for its independent power producer, which will increase production capacity in accordance with its share stake in the business, said CNS.
Asia Plus Securities (ASPS) said ADVANC should continue to deliver strong profits in the second quarter despite recent investments in 5G 700MHz infrastructure. The company will be able to manage costs amid the ongoing pandemic and maintain its leadership in the mobile business, said the brokerage.
In addition to home internet use skyrocketing during the pandemic, lifting the company's income, ADVANC's partnership with Disney is expected to boost earnings in the second half this year and in 2022. This projection does not include prospective synergy with GULF that would enhance its long-term growth, said ASPS.