DELTA falls 6% after DEISG prepares to issue $1.5 billion exchangeable bonds

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โดย Kaohoon·THSG·Read original
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DELTA shares fell 5.95% to 237.00 baht on trading value of 11.6 billion baht after Tisco Securities reported that Delta Electronics Int'l (Singapore) Pte. Ltd., or DEISG, a wholly owned Singapore subsidiary of Delta Taiwan, is preparing to issue zero-coupon exchangeable bonds worth a total of $1.5 billion, with the DELTA shares it holds, a 42.85% stake, as the reference shares. The bonds are split into two tranches. The first, worth $500 million, matures on September 21, 2027, with an exchange price set at 266.80 baht per share. The second, worth $1 billion, matures on September 21, 2031, with an exchange price set at 301.60 baht per share. That represents premiums of 15% and 30% respectively over the reference price of 232 baht per share. The transaction involves no new share issuance, so it does not affect existing shareholders, and if the exchange rights are fully exercised it would amount to roughly 172.1 million DELTA shares, or 1.38% of total paid-up shares. Tisco sees the deal potentially pressuring the share price in the short term through investors' hedging activity, as well as an overhang from shares that could be exchanged in the future, which may cap gains around 267 to 302 baht. It therefore maintains a hold rating with a fair value of 268 baht. Meanwhile, KGI Securities (Thailand) maintains a buy rating and has raised its end-2027 target price to 320 baht from 290 baht, while lifting its 2026-2027 profit forecasts by 2% to 6%.

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Delta Electronics Inc
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Its wholly owned Singapore subsidiary DEISG is issuing $1.5B exchangeable bonds on DELTA shares, pressuring the underlying stock.

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