Telcos advanced information, Tycom wants investors to reject offers under parent merger
By Rishav Chatterjee
(Reuters) – The boards of Thailand-based mobile carriers Advanced Data Services and Thaicom have asked investors to reject offers to buy the companies through a merger by their respective regulators, the companies said on Thursday.
In July 2024, energy producer Gulf Energy Development, Tycom’s largest shareholder, and Intoc Holdings, which controls Advanced, announced their intention to create a new company to maximize benefits for both companies and improve operations and investment.
The merger of Gulf and Intouch, approved by shareholders of Thai billionaire Sarath Ratanavadi’s energy company, will create a new entity valued at 1.037 trillion baht ($30 billion).
According to Forbes, Sarath has a net worth of $15.1 billion and is the fifth richest person in the country.
Gulf has a 47.4% stake in Intoc, followed by Singapore Telecommunications (Singtel) with a 25% interest.
Gulf has partnered with Singtel and Advanced to set up data centers in the country and is expected to start operations this year.
Bids have been launched for Advanced, Gulf Energy, Intouch and Singtel at an estimated price of 216.30 baht per share.
Gulf, in an emailed response to Reuters, said the bid price was final and that it did not intend to revise it.
The independent financial adviser’s recommendation to reject the offers will not affect the merger process, Gulf added.
The advanced financial advisor found the revised price to be lower than the estimated price of 229.55 baht to 285.70 baht.
Advanced shares were up 1.1% at 290 baht on Thursday.
“The announcement of both companies was expected by the market. Since the price of both shares is higher than the tender offer, the board recommended that investors reject the tender offer. This does not pose a big risk to the proposed merger.” Varorit Chirachon, Head of Investment Research and Research at SCB Asset Management said.
As part of the restructuring, a similar tender offer was launched, with Gulf Energy, Intech and Sarat offering to buy 58.9% of Tycom for 11 baht.
Tycom said the rising share price since the merger announcement was the primary reason it asked shareholders to vote against the deal.
The stock closed at 12.3 baht on Thursday.
Intoc and Singtel did not immediately respond to Reuters’ request for comment.
($1 = 34.5700 baht)
(Reporting by Rishav Chatterjee in Bengaluru; Additional reporting by Aditya Govind Rao; Editing by Margank Dhaniwala and David Evans)