Thai Airways releases fair value assessment report ahead of debt conversion plan

Thai Airways International has disclosed its fair value assessment report, aimed at informing creditors and aiding their decision-making regarding the voluntary conversion of existing debt and accrued interest into equity.

The conversion is a part of the company’s rehabilitation plan. 

Capital Advantage Co Ltd was appointed as an independent financial adviser (IFA) to produce this report, emphasising the company’s commitment to a transparent and systematic capital restructuring process that benefits all stakeholders.

In line with its rehabilitation plan, Thai Airways submitted its securities offering and draft prospectus to the Securities and Exchange Commission (SEC) on September 30, moving forward with the capital restructuring process. 

This marks a significant step in the company’s capital restructuring process under its rehabilitation plan, with the goal of turning shareholders’ equity positive.

The IFA report determined that the EV/EBITDA ratio method (enterprise value to earnings before interest, tax, depreciation and amortisation) was the most suitable for valuing Thai Airways’ fair value, as it reflects the company’s operating profitability, historical performance, and financial structure. 

Based on this approach, the fair value of Thai Airways’ equity post-mandatory conversion ranges from 117,380.83 million to 152,101.18 million baht, translating to 6.89–8.92 baht per share. 

If voluntary conversions and accrued interest conversions are also considered, the fair value ranges from 134,725.97 million to 169,446.32 million baht, or 5.65–7.10 baht per share.

Details of the Fair Value Assessment report, prepared by the IFA, can be accessed on the Stock Exchange of Thailand’s website at https://www.set.or.th/th/market/product/stock/quote/THAI/news and Thai Airways’ investor relations site at https://ir.thaiairways.com.