Krungsri Securities disclosed that DELTA has notified the Stock Exchange of additional details regarding its upcoming issuance of zero-interest convertible bonds. The convertible bonds exchangeable into DELTA shares will come from existing DELTA shares held by parent company Delta Taiwan, not newly issued DELTA shares, so there is no dilution impact. The conversion price for the first tranche of convertible bonds is set at 266.80 baht per share, a 15% premium to the reference price of 232 baht, while the conversion price for the second tranche is set at 301.60 baht per share, a 30% premium to that reference price. Krungsri views the move as an effort by the major shareholder to sell shares in a big lot, which typically occurs at a discount to the closing price, but in this case the conversion prices are higher than the previous day's close, with the first tranche about 5% higher and the second tranche about 19% higher. Krungsri maintains its Buy recommendation for DELTA and keeps its target price unchanged at 320 baht per share.
Delta Electronics (Thailand) Public Company LimitedConvertible bond conversion prices set at 15-30% premium to reference price with no dilution, and Krungsri maintains Buy with 320 baht target
Delta Electronics Inc
Bank of Ayudhya PCL
