The Most Beneficial One from the JAS Deal Is…..?
A few days ago, JAS was the talk of the town when it was rumored that both international and domestic telecommunication companies were eyeing to take over the business. 
A few days ago, JAS was the talk of the town when it was rumored that both international and domestic telecommunication companies were eyeing to take over the business.
25 ก.ค. 2562

A few days ago, Jasmine International Public Company Limited (JAS) was the talk of the town when it was rumored that both international and domestic telecommunication companies were eyeing to take over the business.
In the list, there were some big companies such as Korea Telecommunications (KT), Total Access Communication Public Company Limited (DTAC) and Advanced Info Service Public Company Limited (ADVANC).
 
The most interesting part of the deal is who will be the most beneficial person from this deal?
It would be KT if the company is being able to do so. (But anything could happen under the negotiation terms.) The question that comes after KT takes the business is how the two companies could synergize their businesses?
KT would acquire 3.01 million 3BB users from JAS, but the growth afterward would be quite difficult without any growth from new customers which is the same situation JAS encounters. In the end, it will not create any valuation to JAS at all.
 
DTAC should be the one with the most desire for JAS as the company has yet to enter the broadband business. DTAC could synergize the business with JAS while using the same marketing strategy and 3BB customers could merge into DTAC’s customer base. The acquisition, as inorganic growth, would make an outstanding growth for DTAC. With this reason, DTAC must press harder to get JAS.
The deal is also in ADVANC’s interest as well. The company had just announced to penetrate the fiber-optic market through AIS Fiber, targeting one million users this year, but it seems like there is still some limit to ADVANC’s customer base as the new user now has just reached 300,000 while the self-investment of short-term network installation may not be worthwhile.
Thus, the acquisition of JAS would prevent ADVANC from investing a full amount in the installation and turn to lease from JAS instead. Moreover, it could also increase the value of ADVANC’s new products.
At this moment, JAS is the most charming stock in the sector as both DTAC and ADVANC have their own reasons to compete for this cake.
 
Nevertheless, regardless of who will take over the company, the most beneficial person would be “Pete Bodharamik,” JAS no.1 major shareholder who will supposedly earn a lot from selling the share.
The plummet of ฿1.30/share or 17.11% to ฿6.30/share in yesterday trading session and a decrease of 0.79% today was due to the evaluation of selling price of JAS at ฿6.66/share along with the selloff of block trade.