By Yifan Wang
Shares of Thailand's largest telecom company Intouch Holdings PCL soared Monday after an acquisition offer from Gulf Energy Development PCL.
The stock jumped as much as 9.0% to 63.75 Thai baht, its highest intraday price level since November 2019, as investors welcomed the news.
Gulf Energy, which currently holds about 19% stake in Intouch, has offered to buy all remaining shares in the telecom carrier at THB65.00 each, it said in a stock exchange filing on Monday. The total consideration of the deal amounts to over $5 billion.
The electricity and power producer, owned by Thai billionaire Sarath Ratnavadi, said it believes in the "high growth potential" of Intouch, which also provides media and advertising services in addition to its main telecommunication businesses.
Intouch's controlling shareholder, Singapore Telecommunications Ltd., said it is reviewing its options with regard to the offer.
If the offer is successful, it will trigger a mandatory offer by Gulf Energy for Advanced Info Service PCL, another telecom firm. Intouch owns over 40% of Advanced Info Service.
Gulf Energy's shares fell 3.1%, Singtel's shares rose 2.4% and Advanced Info shares lost 0.6%.
Intouch shares were last 8.1% higher at THB63.25.
Write to Yifan Wang at email@example.com
(END) Dow Jones Newswires
April 19, 2021 02:55 ET (06:55 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.