SINGAPORE (BUSINESS TIMES) – Singtel on Thursday (June 16th) offered to increase its stake in Intouch Holdings to 24.99% from 21.21% by acquiring an additional 3.78% stake from Temasek’s wholly-owned subsidiary Anderton Investments.
Singtel will pay $330 million in cash, representing a 5% discount on the volume-weighted average price of each Intouch share on the Stock Exchange of Thailand, calculated for 20 trading days prior to the date of the agreement. purchase of shares.
The consideration of $330 million also represents approximately 2.04% of the last audited consolidated net tangible assets of Singtel and its subsidiaries as of March 31, 2022. Singtel expects to complete the transaction by the end of June 2022.
The Singapore phone company is one of the two major shareholders of Intouch, which is the parent company of Advanced Info Services (AIS), a regional partner of Singtel and Thailand’s largest mobile phone network. The main shareholder is the Thai electricity producer Gulf Energy.
In 2006, former Thai Prime Minister Thaksin Shinawatra sold InTouch, then known as Shin Corp, to Temasek, sparking public criticism that led to his ousting in a coup.
Singtel Group Chief Executive Yuen Kuan Moon said in a statement Thursday that the increased investment deepens the group’s partnership with Gulf Energy and is part of Singtel’s strategy to actively recycle capital to invest in growth. and shareholder returns.
He noted that Intouch delivered good returns backed by continued strong AIS execution.
Independent financial advisor Ernst & Young has advised the independent directors of Singtel that the terms of the acquisition, as an interested party transaction, are on normal trade terms and not prejudicial to the interests of Singtel and its minority shareholders.
Shares of Singtel were down one cent, or 0.4%, at $2.49 at the lunch break on Thursday.