Gulf Development, or GULF, has clarified regarding the news that the Cabinet approved the Ministry of Digital Economy and Society to take legal action against Thaicom, or THCOM, and GULF for failing to comply with the satellite concession contract. The company stated that it has no obligation to pay approximately 1.25 billion baht and will fight the case in accordance with the law. Meanwhile, Krungsri Securities views the impact on THCOM as only short-term, with a Buy recommendation and a target price of 14.7 baht. TTB Wealth assesses the impact on GULF as minimal, with a Buy recommendation and a base price of 75 baht. The case is expected to take several years to reach a final verdict, and both companies are unlikely to set aside provisions in their financial statements.
Thaicom Public Company LimitedTHCOM is subject to legal action for failing to comply with satellite concession contract; impact short-term but negative.
Gulf Energy Development Public Company LimitedGULF faces legal action but states no obligation to pay 1.25 billion baht; impact seen as minimal.
