SINGAPORE (THE BUSINESS TIMES) - Singtel on Thursday (June 16) proposed to raise its stake in Intouch Holdings to 24.99 per cent from 21.21 per cent by acquiring an additional 3.78 per cent stake from Temasek's wholly owned subsidiary Anderton Investments.

Singtel will pay $330 million in cash, which represents a 5 per cent discount to the volume-weighted average price for each Intouch share on the Stock Exchange of Thailand calculated for 20 trading days before the date of the share purchase agreement.

The $330 million consideration also represents about 2.04 per cent of Singtel and its subsidiaries' latest audited consolidated net tangible assets as at March 31, 2022. Singtel plans to complete the transaction by the end of June 2022.

The Singapore telco is one of the two largest shareholders of Intouch, which is the parent company of Advanced Info Services (AIS), a regional associate of Singtel and Thailand's largest mobile phone network. The largest shareholder is Thai-listed power producer Gulf Energy.

Back in 2006, former Thai prime minister Thaksin Shinawatra sold InTouch, then known as Shin Corp, to Temasek, setting off public criticism that led to his ousting in a coup.

Singtel group chief executive Yuen Kuan Moon said in a statement on Thursday that the increased investment deepens the group's partnership with Gulf Energy and is part of Singtel's strategy of actively recycling capital to invest for growth and shareholder returns.

He noted that Intouch has been delivering good returns supported by consistently strong execution from AIS.

Appointed independent financial adviser Ernst & Young has given its opinion to Singtel's independent directors that the terms of the acquisition, as an interested person transaction, are on normal commercial terms and not prejudicial to the interests of Singtel and its minority shareholders.

Singtel shares shares were down one cent, or 0.4 per cent, at $2.49 at the midday trading break on Thursday.