Gulf Energy Development makes takeover bid for Intouch, AIS

News Wireless Thailand 19 APR 2021
Gulf Energy Development makes takeover bid for Intouch, AIS

Thai power producer Gulf Energy Development has made a THB 169 billion buyout bid for Intouch, which controls mobile operator Advanced Info Service (AIS). Gulf Energy Development offered to buy 2.6 billion shares, or an 81.07 percent stake in Intouch, that it does not currently own at THB 65 each.

Gulf Energy Development reports that as of 16 April, it has acquired an 18.93 percent stake in Intouch.

AIS confirmed that Gulf Energy Development has resolved to execute a conditional voluntary offer for all Intouch’s ordinary shares. If Gulf Energy Development acquires 50 percent or more of the total voting rights in Intouch, Gulf will start the tender offer for all securities of AIS, at a price of THB 122.86.

Gulf Energy Development believes that the potential acquisitions of Intouch and AIS will create long-term benefits, as both companies have strong potential and cash flows.

Singtel says stakes in Intouch and AIS 'strategic investments'

Singtel is the biggest shareholder of Intouch, after acquiring a 21 percent stake from Temasek in 2016. SingTel also owns a 23 percent stake in AIS.

Singtel separately announced it considers its stakes in Intouch and AIS as “strategic investments”, and believes “in the long term outlook of the businesses”. Singtel is now reviewing its strategic options “to ensure that Intouch and AIS shareholders get full benefit of the intrinsic value of the businesses”.

Financing for Intouch, AIS purchase

Gulf Energy Development reports it plans to finance the acquisitions of Intouch and AIS by its own cash flows and bank loans. The company’s shareholders will hold a meeting on 25 June to consider the proposed acquisitions.

If the tender offer for Intouch results in Gulf Energy holding 50 percent or more of voting rights, the company is deemed to have acquired a significant control in Intouch, which is a shareholder of AIS and Thaicom. Gulf Energy will be obligated to make tender offers for all securities of AIS at the price of THB 122.86 per share.

Gulf Energy Development said it does not intend to make an offer for Thaicom and is in the process of consulting with the SEC regarding the request for a waiver of the obligation. The tender offer for Intouch will be made only after the conditions precedent are fully satisfied or waived, whether in whole or in part by Gulf Energy Development.

Categories:

Mobile

Companies:

Advanced Info Service,  SingTel,  Thaicom,  AIS

Countries:

Thailand

Tags:

Wholesale, M&A buyouts & divestments

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