17 Dec 2014 17:19:00
Clarification of Appraised Value / Reviewed Appraised Values of Fund's Initial Assets
JorTor. 11-570518 December 17, 2014 To: The President The Stock Exchange of Thailand Re: Clarification of Appraised Value / Reviewed Appraised Values of Fund's Initial Assets TRUE Telecommunications Growth Infrastructure Fund (TRUEIF) SCB Asset Management Co., Ltd., the Management Company of TRUE Telecommunications Growth Infrastructure Fund ("the Fund"), would like to clarify the appraised values / reviewed appraised values of the Fund's Initial Assets as follows; During the Fund's establishment process, the Management Company has managed to procure appraisal of the Fund's Initial Assets in accordance with rules and regulations as stipulated by the Office of the Securities and Exchange Commission. The Management Company has appointed 2 appraisers as the Independent Appraisers, namely Capital Plus Advisory Company Limited and Silom Advisory Company Limited who have provided that the fair values of the Fund's Initial Assets should be THB 67,313 - 76,804 million and THB 67,523 - 73,347 million respectively (based on appraisal reports dated on September 18, 2013). However, on December 25, 2013, the Fund has invested in the Initial Assets with investment value totaling THB 58,080 million which is lower than the fair values provided by Capital Plus Advisory Company Limited and Silom Advisory Company Limited by 12% to 24% and by 14% to 21% respectively. Subsequently, the Management Company has engaged Silom Advisory Company Limited as the Independent Appraiser to perform quarterly review of appraisal value for the period from 1st quarter 2014 to 3rd quarter 2014 in order to provide supporting information to the Fund's auditor in reviewing the Fund's interim financial information. As a result, Silom Advisory Company Limited has provided the fair values of the Fund's Initial Assets as follows; unit: THB million Reviewed appraisal report for the quarter 1/2014 2/2014 3/2014 Fair value 72,491 72,839 72,168 Net unrealized gain (loss) from investments 14,727 348 (671) In order to determine the fair values of Initial Assets, the Independent Appraiser used Income Approach which calculates present value by discounting future cash flows using appropriate discount rate. Consequently, fair values of appraised assets depended on such factors. The Independent Appraiser has calculated the discount rate based on Capital Asset Pricing Model (CAPM) which relies on subjective factors that may change over time, such as, return on government bond, return on SET Index, and return on assets the Independent Appraiser deems comparable to the appraised assets. Therefore, fair values may change over time depending on the said factors. (Investors may study additional details regarding discount rate assumption from appraisal reports and reviewed appraisal reports. Nevertheless, change in fair values of the Fund's Initial Assets resulting from the change in discount rate will only cause net unrealized gain or loss from investments on financial statements and/or interim financial information but will not affect cash flows on which consideration regarding dividend distribution and/or capital reduction is based. Investors may request for appraisal reports and reviewed appraisal reports at the Management Company via telephone no. +66-2-777-7777 press 0 and, then, press 6, during 8.30 - 17.00 hours of every business day or via email firstname.lastname@example.org Please be informed accordingly. Yours Faithfully, TRUE Telecommunications Growth Infrastructure Fund By SCB Asset Management Company (Mr. Sarnthor Mudhasakul) Vice President, Property and Infrastructure Investment Group ______________________________________________________________________ This announcement was prepared and disseminated by listed company or issuer through the electronic system which is provided for the purpose of dissemination of the information and related documents of listed company or issuer to the Stock Exchange of Thailand only. The Stock Exchange of Thailand has no responsibility for the correctness and completeness of any statements, figures, reports or opinions contained in this announcement, and has no liability for any losses and damages in any cases. In case you have any inquiries or clarification regarding this announcement, please directly contact listed company or issuer who made this announcement.