BANGKOK • Gulf Energy Development, Thailand's biggest power producer by market value, has offered to acquire Intouch Holdings, a Singtel associate company that controls the nation's largest mobile phone operator, for as much as 169 billion baht (S$7.2 billion).
Gulf Energy, controlled by billionaire Sarath Ratanavadi, offered to buy 2.6 billion shares, or about 81 per cent of Intouch that it does not already own, at 65 baht each, it said in an exchange filing yesterday. The offer price is 11 per cent higher than Intouch's close last Friday.
Gulf Energy will also tender for 100 per cent of Advanced Info Service, Thailand's biggest mobile phone company controlled by Intouch, at 122.86 baht each.
The Advanced Info offering will be subject to Gulf Energy securing at least 50 per cent of Intouch, it said.
Singtel is the biggest shareholder of Intouch after acquiring a 21 per cent stake from Temasek in 2016. Former Thai prime minister Thaksin Shinawatra sold Intouch - then named Shin Corp - to Temasek in 2006, sparking public criticism. Singtel also owns about 23 per cent of Advanced Info, according to stock exchange data.
In a statement to the Singapore Exchange yesterday, Singtel said it views its stakes in Intouch and Advanced Info as strategic investments, and "believes in the long-term outlook of the businesses".
Singtel said it is reviewing its strategic options to ensure that Intouch and Advanced Info shareholders "get full benefit of the intrinsic value of the businesses".
It added that it will make the relevant disclosures, if any, at the appropriate time. It also advised its shareholders to refrain from taking any action in respect of their shares in Singtel that may be prejudicial to their interests, and to exercise caution when dealing in the shares.
Singtel shares yesterday closed up 2 per cent at $2.60, with 94.1 million shares changing hands.
Intouch shares jumped 7.7 per cent yesterday, while Gulf Energy fell 1.5 per cent.
Mr Sarath, 56, Thailand's second-richest person, has expanded his 10-year-old energy company into deep-sea port, tollway and telecommunications businesses, as well as power projects in Vietnam, Oman and Germany.
Acquisitions of Intouch and Advanced Info will generate long-term benefits from their potential and cash flows as Thailand's leading telecommunications companies, Gulf Energy said.
Gulf Energy's proposed acquisition of Intouch would be Thailand's third-biggest buyout deal, according to data compiled by Bloomberg.
Mr Sarath, Gulf Energy's chief executive officer, has a net worth of about US$9 billion (S$12 billion), most of which comes from his and his family's stake in the power producer.
Gulf Energy will finance the acquisitions of Intouch and Advanced Info from cash flow and bank loans, according to the company's statement.
BLOOMBERG
• With additional information from The Straits Times
