Sarath Ratanavadi, CEO of Gulf Energy Development, at the LIV Golf Invitational in Pathum Thani, … [+]
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Billionaire Sarath Ratanavadi is merging his Bangkok-listed Gulf Energy Development PCL with Intouch Holdings, which controls Thailand’s second largest mobile phone operator by subscribers, Advanced Info Service.
Sarath owns 73.84% of Gulf Energy, which has a 47.37% stake in Intouch. With a net worth of $9.2 billion, Sarath ranked No. 5 on the Forbes list of Thailand’s 50 Richest published earlier this month.
Under the plan, the two companies will merge and form a new company with a simpler shareholding structure, Gulf Energy said in a filing with the Stock Exchange of Thailand late Tuesday.
Gulf Energy shareholders will receive 1.02974 shares of the merged company for each share held, while shareholders of Intouch will receive 1.69335 shares. The merger is expected to be completed in the second quarter of 2025.
“This will help increase efficiency which will enhance flexibility of the business and potential for future business growth,” Gulf said in a statement.
“This creates a balanced business portfolio between the revenue and profit arising from the energy and infrastructure business and digital business,” the statement said, “which will enhance resiliency and foster sustainable growth.”
Gulf Energy, one of Thailand’s largest private electricity producers, has been diversifying into telecommunications and digital businesses. As part of an overall restructuring, Sarath, Gulf Energy, Intouch Holdings and Singtel Strategic Investments Pte. Ltd. will make a tender offer for a 36.25% stake in Advanced Info Service, provider of mobile phone, broadband internet and digital services in Thailand, for Bt216.30 each. Advanced Info closed Tuesday at Bt220.
Singtel Strategic Investments owns 23.31% of Advanced Info Service, while its parent Singapore Telecommunications Limited owns 24.99% of Intouch. Upon completion of the amalgamation, Singapore Telecommunications is set to own 9.08% of the merged entity.
Also under the restructuring plan, Sarath, Gulf Energy, and Intouch Holdings will make a tender offer to buy 58.9% of satellite operator Thaicom PCL for Bt11 per share. Thaicom closed Tuesday at Bt11.10.
The planned tender offers are expected to be completed in the first quarter of 2025.
Earlier this month, Gulf Energy unveiled a plan to step up digital infrastructure as it partners with Alphabet’s Google to build artificial intelligence-powered cloud facilities in Thailand. It also plans to spend an additional 10 billion baht ($271 million) to double its data center capacity to 50 megawatts by March next year.
In January, it started a cryptocurrency exchange, Gulf Binance, in partnership with billionaire Chanpeng Zhao’s Binance.
