Call it off: Thai telecom giants reject merger offers on the line
Shareholders of Thai telecom mobile carriers, Advanced Info Service (AIS) and Thaicom, have been advised to hang up on acquisition offers from their controlling entities. The boards are urging a firm “no” to the merger plans proposed by Gulf Energy Development and Intouch Holdings.
Back in July, Gulf Energy, the powerhouse investor behind Thaicom, and Intouch Holdings, which calls the shots at AIS, announced grand plans to merge.
The deal, already given the green light by Thai billionaire Sarath Ratanavadi’s power company’s shareholders, aims to create a telecom titan valued at an eye-watering 1.037 trillion baht (around US$30 billion).
As part of this ambitious reshuffle, Gulf Energy, Intouch, and Sarath proposed snapping up a 58.9% stake in Thaicom for 11 baht per share. However, citing a rise in stock prices since the merger buzz hit the street, Thaicom is advising shareholders to decline the offer. Yesterday, January 16, its shares held steady at a loftier 12.3 baht.
Meanwhile, AIS faced a similar offer, initially pegged at 216.30 baht per share, only to be trimmed down to 211.43 baht. AIS countered with a financial advisor’s analysis that set the company’s worth between 229.55 baht and 285.70 baht. Its shares, unfazed, finished 1.1% up at a robust 290 baht yesterday, reported Bangkok Post.
As the telecom giants hold their ground, Gulf Energy and Intouch have yet to respond to a request for comment, leaving industry insiders on tenterhooks about the future of this mega-merger.
In related news, late last year Thaicom revealed plans to reposition an EutelSat satellite, now labelled Thaicom 9A, to the 50.5° East orbit. This move comes as the deadline to retain Thailand’s rights to the orbit approaches, expiring tomorrow, November 12.
The satellite operator aims to ensure the country’s continued access to this orbital position by completing the relocation process within the stipulated timeframe.
Thaicom’s subsidiary, TC Space Connect, secured the licence for this orbit from the National Broadcasting and Telecommunications Commission (NBTC). The company’s Chief Executive, Patompob Suwansiri, confirmed the proposal to the NBTC regarding the repositioning of the satellite, initially intended for the 119.5°E orbit in early 2025, to the new location.
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