Thai Bev

Thai Bev: trending up over the course of this session. Recall, Thai Bev has two key catalysts that could see the shares re-rated. i) Potential asset swap involving F&N's F&B unit in exchange for the 29% stake in FNN that Thai Bev holds, allowing Thai Bev to emerge as an Asean F&B mammoth. Expect synergies and cost savings, given the deeper and extended geographical penetration and broader product portfolio. ii) Thai Bev has a possibility of replacing FNN as an STI component stock, as early as Sep '13. Given that Thai Bev currently has no meaningful institutional shareholder representation, it bodes positively for stock demand if there is a subsequent rush by "benchmark-focused" funds to acquire exposure