Gulf Energy Merger Boosts InTouch Shares Thailand
Gulf Energy Development Plc (GULF) shareholders have approved a pivotal merger with Intouch Holdings Plc (INTOUCH), pushing the 990-billion-baht transaction forward. The company’s founder and CEO, Sarath Ratanavadi, will significantly boost the company’s market capitalisation through this merger. The company can potentially reach 870-875 billion baht. GULF’s shares surged following the approval. At the same time, Intouch shares also saw notable gains. This positioned the newly merged entity as a major player in the Thai stock market.
Sarath Ratanavadi is Thailand’s richest man with a net worth of $5.3 billion. He expressed confidence in the merger’s potential to drive growth and efficiency for both companies. He committed to purchasing shares from dissenting shareholders of the company and INTOUCH at market prices. This step is necessary under Thai law to complete the deal. The offer price was set at 56.50 baht for GULF shares and 91 baht for INTOUCH shares, representing significant premiums.
GULF merger simplifies company shares structure
The merger simplifies Gulf’s shareholding structure. Furthermore, it allows the company to maximize future operations and investments, particularly in the fast-growing sectors of telecommunications and digital infrastructure. GULF’s diversification strategy includes investments in clean energy and cloud computing. These initiatives align with the company’s broader vision of sustainable growth. The focus remains on driving long-term progress in Thailand. By partnering with tech giants like Google, GULF is positioning itself to leverage AI and data infrastructure developments, ensuring long-term competitiveness in an increasingly technology-driven world.
Despite the merger’s potential, analysts have advised investors to exercise caution. With both GULF and INTOUCH trading at elevated prices, UOB Kay Hian Securities recommends against chasing shares at current levels, citing overvaluation concerns. Nevertheless, the merger marks a critical milestone in Gulf Energy’s expansion, solidifying its standing as a dominant force in both the energy and digital sectors.
