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The $20.5 billion deal would see the parent company of Advanced Info Service (AIS) combined with Gulf Energy Development
This week, Thailand’s seventh-richest man, Sarath Ratanavadi, has revealed ambitious plans to merge his energy company Gulf Energy Development with its telecoms subsidiary, InTouch Holdings, the parent company of Thailand’s biggest telco AIS.
The move would see the formation of a new public limited company with an estimate value of $20.5 billion.
Gulf already owns a 47.37% stake in Intouch, with the restructure seeing Gulf’s existing shareholders receive 1.02974 shares per stock held in the merged company, while Intouch shareholders will receive 1.69335 shares per stock held.
Singtel is Gulf’s second largest shareholder with a 24.99% stake, which will be converted to a roughly 9% stake in the combined business.
Alongside this restructure, the deal will see Gulf and Intouch make an offer for the 36.25% of AIS shares not already held by Intouch and Singtel, at a 216.30 baht ($6.02) per share. They are also offering to buy a 58.9% stake in Intouch’s subsidiary and local satellite operator, Thaicom, for 11 baht ($0.31) per share.
Thaicom operates four satellites that provide TV and communication services in Asia, Oceania, and Africa.
By combining the telecoms unit and energy company into a single entity, the companies claim they will benefit from improved operational efficiency, flexibility, and more accessible resources. This, they say, will leave the company well positioned to achieve growth in the energy, infrastructure, and digital services sectors.
“The combined expertise will benefit both companies and all stakeholders, increasing the potential of the new company to be a leader in the energy and telecommunications business,” explained Ratanavadi in a joint statement from both companies.
The deal is expected to close in 2025, subject to typical regulatory clearances.
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