Thursday, 22 December 2016

Stock Market Today:Would an asset swap be good for ThaiBev investors?



Investors of Thai Beverage have been looking forward to an asset swap between ThaiBev and TCC Assets - controlled by ThaiBev's chairman Charoen Sirivadhanabhakdi - after Fraser & Neave declared a dividend in specie of Frasers Centrepoint's shares in 2013.

But would such a move be beneficial to ThaiBev's shareholders?

DBS Group Research analyst Andy Sim does not think so.

The purported swap exercise imagined by the market is likely to result in earnings dilution for ThaiBev, said Sim.

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