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BANGKOK 16 June 2019 17:48

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Jasmine International faces loss of licenses on failed bid payments

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Jasmine International Faces Loss of Licenses on Failed Bid Payments
BY JACOB MASLOW

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BANGKOK: -- Jasmine International is facing increased pressure to find a joint-venture partner for its 4G business by the March 21 deadline.

The NBTC (National Broadcasting and Telecommunications Commission) has issued an ultimatum to the company, stating that it would file a civil lawsuit if the bid fee payment for its 900 MHz license is not paid by the deadline.

In addition to the suit, Jasmine may also lose its operating licenses if they default on the payment. According to company executives, the company is in partnership talks with two telecom companies in Malaysia and Singapore.

Temasek Holdings, the Singapore state investment firm, or a subsidiary of Singapore Telecommunications may be interested in a partnership with Jasmine.

Full story: https://ethailand.com/business-news/jasmine-international-faces-loss-of-licenses-on-failed-bid-payments/1552/

-- eThailand 2016-02-12

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Why are they worried so much if the payments are not past due. So much to the point of making the threats in the article.

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Why are they worried so much if the payments are not past due. So much to the point of making the threats in the article.

it's TRUE that they are not even due for payment. It's also TRUE that are withholding payment until this has been sorted out. It's TRUE that are causing most of the problems and who benefits the most if the shit hits the fan. I honestly don't know why they don't just contest the original auction. It was altered mid auction to extend the original bidding time. I would have thought there is something to be done there! I think it's ridiculous to threaten the company with withdrawal of all current licenses. Especially as the would effectively destroy the only decent Internet company in Thailand. Who would benefit.. No one ... Well maybe TRUE!

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Kind of makes me wonder...when the NBTC holds these auctions, don't do they any kind of assessment on the financial ability of the bidders to actually provide the service rights they're bidding for???

Based on the description above, it sounds like the answer is NO... Equally have to wonder, on what basis Bangkok Bank issued their letter of credit backing Jasmine?

----------------------------------------

The same news source as the OP here had a prior article back in January that provided some elaboration:

The Bangkok Bank has requested a new borrowing plan from Jasmine International due to the company spending an exorbitant amount for licensing costs. The company previously won a 900 MHz license. Jasmine is now facing uncertainty as the loan is needed to rollout the company’s 4G offerings. JAS Mobile Broadband, part of Jasmine, spent 75.7 billion baht for the license.

True Move H Universal Communications (TUC) purchased the second license at a cost of 76.3 billion baht. Both companies were given 90 days to make their first payment of 8.04 billion baht. The winners must pay an additional 25% this year and 25% in 2017, with the remaining value being paid off by 2018.

It is expected that both companies will make their first payment during the first week of February instead of in January.

True stated that the company will not have an issue obtaining the appropriate loan, but did state that two lenders have asked for the loan’s conditions to be readjusted. True already provides 4G services, so the delay in being able to utilize the 900 MHz spectrum will not hurt the company’s bottom line.

https://ethailand.com/business-news/4g-bidders-face-delayed-commercial-launch-amid-strict-lending-conditions/1414/

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Kind of makes me wonder...when the NBTC holds these auctions, don't do they any kind of assessment on the financial ability of the bidders to actually provide the service rights they're bidding for???

Based on the description above, it sounds like the answer is NO... Equally have to wonder, on what basis Bangkok Bank issued their letter of credit backing Jasmine?

on the basis that the original auction conditions were applied. The auction was expected to go to about 20-25billion or double the reserve.. Because of very active bidding the NBTC board had an emergency meeting and amended the bidding terms to alter the cut off time. Hence the ridiculous two days of bidding and the equally ridiculous 75billion baht final price! They effectively botched their own auction and the rules of business!

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If that's what happened, fine... But it's also true, that the two bidders consciously decided to bid/submit bids at those higher/exhorbitant amounts. They could have bailed out if they felt the price was getting too ridiculous. I remember reading back at the time that the reps for the two companies were quoted at saying their final bids were just at or above the highest amounts they were prepared to bid.

Did they really submit final bids that were THREE times what the expected price was supposed to be?

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The reserve was only 12.7 billion. The foreign owned companies bailed out at about 35-40billion.. Well the Chinese company got one of the bids!

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Just one addition to this:

The company current share price at SET is less than 3 baht, traded around 2.90 or less,

JAS has XD to pay dividends on 25 Feb 2016 at 0.30 baht, which means over than 10% from it's share price,

the previous XD in last Nov. 2015 was at 0.10 baht,

This time JAS going to pay 300 % than the previous XD, can anyone explain this?

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