DELTA shares jumped 3% after analysts said the issuance of exchangeable bonds worth a total of $1.50 billion by Delta Electronics International (Singapore) Pte. Ltd., a shareholder and subsidiary of Delta Electronics Inc., will not pressure earnings per share. The bonds will be issued on September 21, 2026, in two tranches. Tranche A has a principal amount of $500 million, a one-year term, and matures on September 21, 2027, with an initial exchange price of 266.80 baht per share, a 15% premium to the reference price of 232 baht per share. Tranche B has a principal amount of $1 billion, a five-year term, and matures on September 21, 2031, with an initial exchange price of 301.60 baht per share, a 30% premium to the same reference price. If the exchange rights are fully exercised, Tranche A would cover approximately 62.1 million DELTA shares and Tranche B approximately 109.9 million shares, for a total of about 172.1 million shares, or roughly 1.38% of DELTA's issued and paid-up shares. This compares with the exchangeable bonds issued by Delta International Holding Limited B.V. in January 2025 worth $525 million, which covered about 97.4 million shares, or 0.78% of issued and paid-up shares. Kasikorn Securities Public Company Limited assesses that this bond issuance uses existing shares to support the exchange rather than issuing new shares, so it will not reduce earnings per share, and the issuer remains subject to a 90-day lock-up on share sales. It therefore maintains its Buy recommendation with a mid-2027 target price of 300 baht, based on a target price-to-earnings ratio of 92 times.
Delta Electronics (Thailand) Public Company LimitedBroker says the $1.5B exchangeable bond issue uses existing shares so it won't dilute EPS, maintaining Buy with a 300 baht target.
