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Bangkok-based Gulf Energy, which owns 18.9% of Intouch, said in
a filing it had offered to buy the rest of the shares for 65
baht per share, 11% higher than its close on Friday.
The $5.4 billion bid if successful would be the second largest
M&A deal in Thai history, behind only Tesco's $10.6 billion sale
of its local operations last March, Dealogic data showed.
If Gulf is able to secure at least 50% of Intouch, it will also
offer to buy out AIS at 122.86 baht per share, it said in a
filing, well below the stock's Monday close at 169.50.
The company added that Intouch, which owns 40.45% of AIS, had
high potential to generate cash flow given the telecom firm's
growth potential.
"The company is confident that such investments will generate
sustainable and long-term returns in terms of dividends," Gulf
said in the filing.
AIS acknowledged the plan in a filing but did not comment on
whether the bid was welcome. A representative for Intouch could
not immediately be reached for comment.
Gulf said it does not intend to buy out Intouch's satellite
operator Thaicom Pcl and will request that Thailand's securities
regulator waive its requirement for a tender offer, it said.
Singapore Telecommunications, the biggest shareholder in Intouch
with a 21% holding and which also owns 23% of AIS, said it was
reviewing its options for the stakes.
"Singtel views its stakes in (Intouch) and (AIS) as strategic
investments and we believe in the long term outlook of the
businesses," the company said in a statement.
Intouch shares were up 7.69% in late Monday trade following the
news, while Gulf Energy, which is led by billionaire Sarath
Ratanavadi, was down by around 1.5%. AIS shares were up 0.89%.
AIS competes with True Corp, the country's No. 2 mobile
operator, and Total Access Communication (DTAC), owned by
Norway's Telenor.
Gulf said it would use working capital and financing from
financial institutions to fund the transaction. The company will
also retain an independent financial adviser to provide opinions
for its shareholders.
Gulf and Intouch did not name their financial advisers in the
filings.
($1 = 31.2300 baht)
(Reporting by Patpicha Tanakasempipat; Additional reporting by
Kane Wu in Hong Kong and Aradhana Aravindan in Singapore;
editing by Edwina Gibbs and Jason Neely)
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