In exchange for its stake in Intouch, Singtel will receive a 9% stake in NewCo, which is expected to become one of the largest and most liquid Thai-listed companies. Singtel will also book an estimated gain of $0.4 billion from the amalgamation.
Singapore Telecommunications (Singtel) says that it supports the amalgamation of Intouch Holdings and Gulf, Intouch’s largest shareholder. The amalgamation will simplify Singtel’s stake in its Thai associate, Advanced Info Service (AIS), by removing Intouch as the intermediary company. The amalgamation will also result in Intouch and GULF being dissolved, with a new legal entity formed as a listed company in Thailand (NewCo).
Singtel and GULF own respective stakes of 24.99% and 47.37% in Intouch. Intouch, in turn, holds a 40.44% stake in AIS. Gulf, Intouch and AIS are listed on the Thai stock exchange.
