Singtel has announced its support for the merger of Intouch Holdings and GULF, Intouch's largest shareholder. This merger will create a leading digital and energy infrastructure company in Southeast Asia called NewCo.
This restructuring will simplify Singtel's ownership in its Thai associate AIS by eliminating Intouch as the intermediary holding company.
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Currently, Singtel and GULF own 24.99% and 47.37% of Intouch respectively, while Intouch holds 40.44% of AIS. All three entities are listed on the Thai stock exchange. In exchange for its stake in Intouch, Singtel will receive around 9% ownership in NewCo. This move is expected to result in a gain of approximately SGD 0.4 billion for Singtel.
After the transaction is completed, Singtel will explore options for its stake in NewCo as part of its long-term investment strategy in Thailand. As part of the deal, Singtel will participate in a voluntary tender offer with GULF, Intouch, and GULF's major shareholder, Sarath Ratanavadi, to acquire all remaining shares in AIS at THB 216.3 per share.
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Singtel will be able to acquire up to 10% of AIS shares through this offer. The transaction is anticipated to be finalized by the second quarter of 2025, pending regulatory approvals and approval from Intouch and GULF shareholders.
Arthur Lang, Singtel's Group CFO, expressed support for the merger, stating that it will simplify AIS' ownership structure and allow Singtel to increase its direct stake in AIS. He also mentioned the opportunity to benefit from a special dividend proposed by Intouch.
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