Analyst upbeat on effects of AIS-TTTBB deal

Move to be a boon for broadband market

The takeover of Triple T Broadband (TTTBB) by Advanced Info Service (AIS) is expected to create a synergy value for AIS of 9.65 baht per share, or 4.3% of its market price, while True Corporation should also benefit from market rationalisation, according to an analyst.

The fixed broadband internet market is set to become more rationalised through less intense competition and the penetration rate (on a per household basis) is expected to reach 80% in the next 3-5 years compared to 50% at present, said Pisut Ngamvijitvong, senior equity research analyst at Kasikorn Securities (KS).

Mr Pisut said the brokerage believes the deal will optimise the operating expenses and capital expenditure to improve the investment return of the fibre broadband internet service…