Published on : Jul 23, 2015
The Siam Commercial Bank offered $296mn to Thai Beverages and posed an unusual equity deal to the primary markets in Asia.
Thai Beverages were offered the amount on the basis of warrants placement all in a European-style. One of the oldest bank in Thai offered 534.3mn worth of warrants for one share of warrant and the pricing was a fix at $0.02328.
Kindest Place Groups Ltd is the warrants issuer who will not receive any of the advances due to his their agreement with SCB.
The price fixed represented a 4.2% premium to the closing price of $0.755 in Singapore for the month of July, dated 22.
However, according to the U.S., the dollar-denominated warrants typically have a three-year tenor. It clearly matures in 2018 in the month of July, dating 28.
The exercise price has been fixed at $0.9941/$0.72996 in reference to a price that has a premium of 31.7%.
ThaiBev have never reached such sky high levels before and this is the first time they have touched an all-time high on the Wednesday close.
The warrants have been placed with dividend protection that simply implies to be an effective yield of about 31.8% from Bto.61 per share.
If the warrants are fully exercised, the Kindest Place Groups ltd and the family involved behind it will see the stake reduced in the liquor market. The stake will drop to 63.8% from a value of 65.9%, added a source.
Most of the investors in the market believe that hedge funds are backed by one major anchor order. In order to necessitate hedging, the Bank of America Merrill Lynch has participated in the stock business and arrangements in coordination with the issuer. This act has enabled the investors to borrow more stock for arbitrary reasons.
The warrants are expected to be listed on the Open Market of the FSE.