The board of Thaicom, a Thai geostationary satellite operator, is recommending shareholders reject a takeover bid if the stock price remains above the offered 11 baht ($0.32) per share until the February 6th deadline.
The offer, from Thai billionaire Sarath Ratanavadi, power producer Gulf Energy Development, and mobile operator Intouch Holdings, falls within an independent valuation range but is deemed insufficient by Thaicom's board. The board's January 16th filing to the Thailand stock exchange emphasizes that the offer doesn't reflect Thaicom's full potential, especially considering the stock has traded consistently above the offer price, often exceeding 12 baht in 2024.
This takeover bid is part of a larger proposed merger between Gulf and Intouch, aiming to create a $30 billion entity consolidating their energy and telecom assets. Gulf, led by Ratanavadi, already holds a significant 41.14% stake in Thaicom and a 47.4% stake in Intouch.
Thaicom's filing highlights its ambitious growth strategy, including plans for deploying new satellites to replace outdated infrastructure and boost broadband capacity. The company recently acquired a geostationary satellite from Eutelsat, strategically positioning it over Asia and Europe. Further expansion plans include leveraging government approvals for growth in India and diversifying into emerging markets like geospatial analytics and carbon credit platforms.
Advanced Info Service, an Intouch Holdings-controlled mobile operator, echoed the sentiment, urging its shareholders to reject a related tender offer due to the low offer price.