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AIS and Thaicom Urge Investors to Decline Acquisition Offers

AIS and Thaicom Urge Investors to Decline Acquisition Offers

The boards of Thailand’s Advanced Info Service (AIS) and Thaicom have urged shareholders to reject acquisition offers from their controlling entities.

In July 2024, Gulf Energy Development, the largest shareholder of Thaicom, and Intouch Holdings, which oversees AIS, announced plans for a merger.

If approved, the merger would result in a new entity valued at 1.037 trillion baht ($30 billion), a proposal already endorsed by shareholders of Gulf Energy, owned by Thai billionaire Sarath Ratanavadi.

As part of this restructuring, Gulf, Intouch, and Sarath proposed purchasing 58.9% of Thaicom at 11 baht per share. However, Thaicom is requesting shareholders to vote against the deal, attributing this to its stock price increase following the merger announcement. Thaicom’s shares closed at 12.3 baht on Thursday, unchanged from the previous day.

A similar tender offer was made for AIS, which initially valued the company at 216.30 baht per share but was later revised down to 211.43 baht. AIS stated that its financial adviser determined the revised price falls below its estimated valuation range of 229.55 baht to 285.70 baht. On Thursday, AIS shares rose by 1.1% to 290 baht each.

Gulf Energy and Intouch have not yet responded to Reuters’ request for comments.

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