Thaicom pushes back against takeover bid

TAMPA, Fla. — Thaicom’s board is urging shareholders to reject a takeover bid for the Thai geostationary satellite operator if its stock remains above the 11 baht ($0.32) per share offer until the tender closes Feb. 6.

The offer, from Thai billionaire Sarath Ratanavadi, power producer Gulf Energy Development and mobile operator Intouch Holdings, falls within an independent valuation range of 10.94–14.62 baht. 

However, Thaicom’s board said in a Jan. 16 filing to Thailand’s stock exchange that it does not reflect the company’s full potential, particularly given its shares have been trading consistently above the offer price. The stock has reached above 12 baht for much of 2024.

The takeover bid is part of a merger proposed last year between Gulf and Intouch to consolidate their energy and telecom investments into a new entity valued at around $30 billion.

Gulf, led by Ratanavadi, is already Thaicom’s largest shareholder with a 41.14% stake and also holds a 47.4% stake in Intouch, according to the stock filing.

Thaicom highlighted its strategic growth ambitions in the filing, including plans to deploy additional satellites to replace aging infrastructure and expand broadband capacity. 

Last year, the company acquired a geostationary satellite from France’s Eutelsat and moved it to an orbital slot over Asia and Europe to retain international spectrum rights for the position.

Thaicom also noted it is exploring growth opportunities in India following government approval to expand services there, as well as diversifying into emerging markets such as geospatial analytics and carbon credit platforms.

Advanced Info Service, a Thai mobile operator controlled by Intouch Holdings, also called on shareholders to reject a related tender offer for the company, citing the offer price as too low in a separate stock exchange filing.