Gulf Development Public Company Limited (GULF) and Thaicom Public Company Limited (THCOM) have issued clarifications regarding the Cabinet's approval for the Ministry of Digital Economy and Society to take legal action against both companies. They confirmed that all assets under the concession agreement were fully returned to the ministry on September 11, 2021, and they are ready to exercise their legal rights to defend against the lawsuits. Meanwhile, Asia Plus Securities noted that this news is a short-term negative sentiment for GULF and THCOM. GULF holds a 41.5% stake in THCOM and consolidates its performance in its financial statements. In a worst-case scenario, it could impact profits through consolidation, but there is no court ruling confirming any wrongdoing. The research department maintains a Buy recommendation on GULF with a fundamental value of 80 baht per share, viewing the pullback as an opportunity to accumulate. For THCOM, it recommends only trading, as the case may take several years and remains an overhang until resolved.
Thaicom Public Company LimitedCabinet approved legal action against THCOM; lawsuit overhang until resolved.
Gulf Energy Development Public Company LimitedCabinet approved legal action against GULF and THCOM; potential profit impact via consolidation of THCOM.
