DELTA shares saw two big-lot trades totalling 2.62 million shares worth 644.34 million baht at an average price of 245.93 baht. Meanwhile, Tisco Securities said the parent company Delta Electronics Inc.'s issuance of 1.5 billion US dollars in exchangeable bonds creates value from the DELTA shares the parent already holds, with no new shares issued and no significant impact on the company's control structure. Delta Electronics Int'l (Singapore) Pte. Ltd., or DEISG, a wholly owned Singapore subsidiary of the parent, will issue zero-coupon exchangeable bonds worth a total of 1.5 billion US dollars, referenced to the DELTA shares the parent holds, a 42.85% stake. The issue is split into Tranche A worth 500 million US dollars, maturing on 21 September 2570, with an exchange price of 266.80 baht per share, and Tranche B worth 1 billion US dollars, maturing on 21 September 2574, with an exchange price of 301.60 baht per share, representing conversion premiums of 15% and 30% respectively over the reference price of 232.00 baht per share. Using an implied exchange rate of 33.159 baht per US dollar, the 1.5 billion US dollars of exchangeable bonds are worth about 49.7 billion baht and can be exchanged for roughly 172.1 million DELTA shares, or 1.38% of total paid-up shares. Tisco views this as not yet significantly affecting the company's overall control structure, but the transaction could trigger short-term selling pressure and add volatility from hedging by exchangeable bond investors. It maintains a Hold recommendation on DELTA with a fair value of 268.00 baht, without revising its earnings forecasts, and sees the overhang from shares exchangeable in the future as still limiting the chance of the price rising above the 267-302 baht range. It flags key risks to watch: raw material shortages, rising royalty fees, and loss of market share in the new-generation AI business using 800VDC architecture.
Delta Electronics (Thailand) Public Company LimitedParent's $1.5B exchangeable bond issuance on its 42.85% DELTA stake could trigger short-term selling pressure and hedging volatility, capping upside; Tisco keeps Hold with 268 baht target.
Delta Electronics IncDelta Electronics Inc. issues $1.5B zero-coupon exchangeable bonds via its Singapore subsidiary DEISG, monetizing its existing DELTA stake without issuing new shares.
TISCO Financial Group Public Company LimitedTisco Securities is cited only as the analyst issuing the Hold rating and 268 baht fair value on DELTA, not as a subject of the news.
