DELTA clarifies $1.5 billion convertible bond issue will not affect business; brokers see short-term pressure, recommend gradual buying with target of 276-313 baht

Corporate ActionAnalyst
โดย สำนักข่าวอีไฟแนนซ์ไทย·THSG·Read original
Summary · why it matters

Delta Electronics (Thailand), or DELTA, informed the Stock Exchange of Thailand that its major shareholder, Delta Electronics International (Singapore) Pte. Ltd., a subsidiary of Delta Electronics Inc., plans to issue and offer two tranches of zero-coupon convertible bonds outside the country with a total value of 1.5 billion US dollars, around September 21, 2026. The issue is divided into Tranche A Bonds worth 500 million US dollars, maturing on September 21, 2027, and Tranche B Bonds worth 1 billion US dollars, maturing on September 21, 2031. The company confirmed that this bond issuance will not affect its board and management structure, business administration structure, or policies and business operations, and that the purpose is to increase working capital and support future business expansion. The initial conversion price of the Tranche A Bonds is 266.80 baht per share, 15 percent above the reference price, and that of the Tranche B Bonds is 301.60 baht per share, 30 percent above the reference price. If the conversion rights are exercised in full, the bonds will be converted into company shares currently held by shareholders totaling 172,086,206 shares, or approximately 1.38 percent of all issued shares. Phillip Securities (Thailand) views this as a conversion from shares already held, so there will be no EPS dilution, but expects the share price may decline in the short term, and if the price weakens, sees it as an opportunity to gradually buy, with a target price of 276 baht. Krungsri Securities, meanwhile, sees DELTA potentially facing short-term negative factors from the parent company's Exchangeable Bond issuance worth 1.5 billion US dollars, estimating conversion prices at a premium of 15-20 percent for a 1-year term, equivalent to 289-302 baht, and 30-40 percent for a 5-year term, equivalent to 327-353 baht.

Impact on stocks 2

Electrification & Mobility▲ · 1 stocks
Robotics & Physical AI▲ · 1 stocks
Delta Electronics Inc
2308
± MixedCapitalrelevance

Delta Electronics Inc's subsidiary is issuing $1.5B zero-coupon convertible bonds to raise working capital and fund expansion, with conversion into DELTA Thailand shares.

Off-coverage companies 2

Krungsri Securities Public Company LimitedPrivate± Mixed
Capitalrelevance

Krungsri Securities is only cited for its analyst view that DELTA faces short-term negative factors from the parent's bond issuance.

Phillip Securities (Thailand) Public Company LimitedPrivate± Mixed
Capitalrelevance

Phillip Securities is only cited for its analyst view of no EPS dilution and a 276 baht target price on DELTA.

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