The share price of Jay Mart Public Company Limited (JMART) rose in the morning session in response to the news report of the company cooperating with BTS to create more synergy throughout its business chains.
“Kaohoon Online” and “Kaohoon Turakij Newspaper” reported that JMART is expecting to issue 300 million shares of new ordinary shares for BTS Group Holdings Public Company Limited (BTS) through private placement for a major business synergy.
BTS has KEX for its delivery business and VGI, MACO, and PLANB for advertising business. Meanwhile, JMART has JMT, SINGER and J under its wing for bad debt collection, hire purchase business and rental spaces businesses.
The report stated that the Board of Directors of JMART are discussing and considering the deal, which could come to a conclusion within a few days.
An analyst from a securities company who asked not to be named said that this is a big synergy that can create more possibilities for both companies. The delivery business of Kerry Express could combine with JP Insurance, while JMART group could make good use of big data from BTS’ rabbit cards that have a record over 14.3 million cards. Moreover, JMART’s mobile business can also settle in BTS stations as pop-up stores with VGI, MACO and PLANB as backups for media and advertisement.
Additionally, JMART made an official statement, published through the Stock Exchange of Thailand, stating that according to the Kaohoon news newspaper, stock news on August 26, 2021, which appeared with inaccurate and unclear content in many issues.
However, the company is currently considering such a matter. The matter must be presented to the Board of Directors by the company to approve the transaction’s details by August 26, 2021.
JMART added that such approval is still subject to the Board of Directors’ and shareholders’ opinions and approvals. If such a transaction occurs, it will not be qualified as a transaction that must be processed on a Tender Offer in accordance with the SEC’s announcement.
The share price of JMART rose 6.57% to Bt36.50 per share at the closing of the morning session on August 26, 2021.