Mr. Pornchalit Ploykrachang, Deputy General Manager, Head of Real Estate Infrastructure Investments, Bualuang Asset Management As the manager of Jasmine Broadband Internet Infrastructure Fund (JASIF) revealed that from Jasmine International Plc. Triple T Broadband (TTTBB) to Advanced Wireless Network Company Limited (AWN), a subsidiary of Advanced Info Service Public Company Limited (ADVANC), which AWN will become a sponsor (sponsor) a new replacement of JAS, who will seek the approval of the holders of shares at the meeting of the JASIF shareholders, which held the Extraordinary General Meeting of the shareholders no. 1/2565 on October 18, if the assembly After voting for AWN to be a sponsor, it will be considered in Agenda 1.1-1.3 with details as follows:
Agenda 1.1 AWN would like to change the ban on competition with mutual funds or other matters under the operating agreement, because AWN has been running home broadband or internet business as TTTBB since 2015. If the ban on competition AWN will not be in able to do business. and unable to expand the business Where the lease uses fiber optic cable (OFC), TTTBB can still negotiate to renew the lease for another 3 years from the end of the lease in 2029, but if the lease is not renewed, AWN can create fiber optics on its own It is expected to take 2 years Bualuang Asset Management, as the fund manager, sees that this rumor will have some impact on the fund, but not much.
Mr. Pornchalit said that creating a new fiber optic or fiber is quite difficult because the current government has a policy to adapt the scenario so that you don’t have cables like in the past. And the strengths of JASIF resources are already widespread in communities in remote areas: if AWN goes into operation on its own, it will be very expensive. Therefore, there is a possibility that AWN will continue to rent. Because it needs fiber that can enter the community that will also support 5G leadership.
Furthermore, if AWN can acquire TTTBB, it will increase AIS’s broadband market share to 39% (currently 19%) and TTTBB’s market share to 20%, which will increase its potential to be able to compete with TRUE services, which have the highest market share, as well as AIS or AWN, can merge (bundle) mobile and broadband services together.
Bualuang Asset Management believes that changing sponsors in AWN with financial stability Because looking at the condition of the broadband industry, TTTBB has a decrease in ARPU (Revenue Per Unit) in the last Q1 and Q2, there is a decrease in Net Add. TTTBB may have difficulty paying rent. TTTBB has only one business, the opportunity to grow is difficult, the ARPU is 600 baht, against the 400 baht of the competition.
Agenda 1.2 Change of lease and rental details of optical fibers (OFC) and termination of rental income insurance contracts and a contract for the provision of tenant property and the advance rent increase that TTTBB has agreed to pay to the Fund
Agenda 1.3 Consider and approve the waiver and / or correct Some details relating to the agreement to execute the agreement and terminate the bank account agreement and modify the mutual fund project as necessary to comply with the resolutions of the meeting of shareholders.
Mr. Pornchalit said that the insurance contract income accounted for 30% of the revenues, with the main contract having a turnover of 7 billion baht per year and an income guarantee contract of 3,000 million baht per year, but AWN compensated by extending the lease for another 6 years or end of 2037 from the end of 2032 originally from the extension of the lease term, JASIF unitholders will receive additional benefits. Previously, the dividend per unit (dividing per unit: DPU) was increased to 9.15 baht / unit from 7.54 baht / unit and the net present value increased to 5.76 baht / unit from 5.5 baht /unit.
In addition, AWN offers to pay the rent upfront for 3 years at 1,000 million baht per year, for a total of 3,000 million baht, which the fund will use as a reduction in capital, not as income. Receive a refund of 0.13 baht / unit
In addition, a loan from Bangkok Bank of 14 billion baht if AWN is a new sponsor. Bank of Bangkok will reduce the interest rate to MLR-0.50% from the current MLR rate and extend the repayment period for another 2 years or to the end of 2032, which will make the company more liquidity and result in more DPU payments.
Furthermore, the JASIF fund is likely to add more assets to the fund. From discussions with AWN executives, it is possible to bring AIS / AWN resources as a data center. Fiber optic tower, etc., which AIS has a lot of resources. And there is still a need to raise funds to use in the 5G auction, 3500MHz spectrum, but it has not promised when the assets will be put into the fund.In the meantime, TTTBB’s earnings outlook has weakened and in recent years Net Add has continued to decline. The growth is only 2-3% per year, causing TTTBB’s revenue from last year to drop to 18 billion baht.
As for the price that AWN bought JASIF at 8.50 baht, the price of the JASIF investment units did not rise as before. but if the deal is successful Unitholders also have the opportunity to receive additional dividends. and if interest rates are stable, funds for infrastructure will also increase.
while at present Institutional and JAS investors hold about 40% of the JASIF fund, while 60% of retail investors will have to vote with three quarters of the participants. If the vote does not pass Bualuang Asset Management must bring the results of the votes that were discussed with AWN on how AWN will proceed.
