JTS: debt default fixed, MSCI exit, and a 6bn baht asset sale in play
Debt default resolved, CB caution sign lifted JTS settled the default on its debentures and the Stock Exchange removed the CB (caution) sign from its shares on 22 July. That clears the biggest worry hanging over the stock and restores some investor confidence, which supports the price.
Removing the default warning is the key event that repaired JTS's financial standing and confidence.
Dropped from MSCI small-cap index, forcing fund outflows MSCI removed JTS from its Global Small Cap index from 31 August, so index-tracking funds had to sell the shares. Krungsri estimated this pulls money out of JTS, a mechanical downward push on the price that has nothing to do with the company's business.
Index removal is a concrete, forced-selling event that pressures JTS's price.
Talks to sell JASTEL for at least 6 billion baht JTS is negotiating to sell its Justel/JASTEL network unit for no less than 6 billion baht, far above the 1.2 billion it paid in 2021. A deal would bring in cash to fix its liquidity after the default, though talks are early and may fall through.
A potential multi-billion-baht divestiture is the biggest company-specific value driver for JTS.
Fresh 635 million baht bond default and JAS rescue plan Three JTS bond series defaulted on payments totalling 635 million baht, and major shareholder JAS Asset outlined a plan to raise money to repay them. This shows the cash strain is not fully over and keeps risk alive for JTS shares.
The new default and shareholder bailout plan are the main counterweight to the positive debt-resolution news.