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Thai billionaire Sarath to consolidate energy and telecom enterprises.

Thai billionaire Sarath to consolidate energy and telecom enterprises.

Thai billionaire Sarath Ratanavadi has introduced a strategy to merge his energy and telecom enterprises by combining his publicly listed power company with the parent company of Thailand’s most valuable mobile phone operator.

In separate announcements, Gulf Energy Development Pcl and its telecom arm Intouch Holdings Pcl revealed the merger plan. Shareholders of Gulf Energy will receive 1.02974 shares of the merged entity, while Intouch shareholders will obtain 1.69335 shares for each stock they hold. Gulf Energy currently holds a 47.4% stake in Intouch.

The collective market capitalization of the two entities stood at $20.5 billion based on Tuesday’s closing prices in Bangkok.

Ranked as the second-wealthiest individual in Thailand with a net worth of $9.8 billion, Sarath is reorganizing his business ventures spanning renewable energy, telecom, and data centers, shortly after securing control of Intouch three years ago. This restructuring aims to enhance operational advantages, streamline shareholding structures, and uncover growth prospects in the energy, infrastructure, and digital sectors, according to Gulf Energy.

Sarath expressed in a statement that the amalgamation of expertise will enhance the potential of both companies to excel in the energy and telecommunications spheres. The new entity intends to venture into renewable energy sources, along with an expansive digital strategy.

Gulf Energy, Intouch, Singtel Strategic Investments Pte., and Sarath have proposed a tender offer for a 36.25% stake in the mobile carrier Advanced Info Service Pcl at 216.30 baht per share. Singtel backed the merger between Gulf Energy and Intouch, signaling support for streamlining its shareholding in the Thai associate Advanced Info.

The restructuring initiative also involves a proposed acquisition of 58.9% of Thaicom Pcl, a satellite operator, at a purchase price of 11 baht per share. The completion of this restructuring is anticipated in the second quarter of the following year, pending regulatory approvals. Advisors for Gulf Energy on this transaction were Bualuang Securities and UBS AG.

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