The merger between two industrial giants went through smoothly on Thursday as shareholders of Thailand’s energy behemoth, Gulf Energy Development, and telecommunication leader, Intouch Holdings, approved the proposal for consolidation.
Gulf Energy Development Public Company Limited (SET: GULF)’s shareholders unanimously voted, with a 99.99% approval, in favor of the proposed merger with affiliate Intouch Holdings.
Meanwhile, 98.7483% of Intouch Holdings Public Company Limited (SET: INTUCH)’s shareholders also voted in approval of the merger.
In a recent development, Mr. Sarath Ratanavadi, CEO of GULF, Gulf Holdings (Thailand), Gulf Capital Holdings Limited, and Gulf Investment and Trading Pte. Ltd. have been assigned the responsibility to buy back shares from shareholders who opposed the specified merger.
For GULF, this concerns 715,100 shares, equivalent to about 0.0068% of the total voting rights of the company’s shareholders, with the repurchase price set at the previous day’s closing (October 2, 2067) of THB 56.50 per share, amounting to 40.4 million baht in total.
For INTUCH, the opposing shareholders hold 33,794,783 shares, accounting for 1.2429% of the total voting rights of the company’s shareholders. Their repurchase price is also based on the previous day’s closing (October 2, 2067), set at THB 91 per share, totaling 3.08 billion baht.
These buyback initiatives reflect the complexities and financial responsibilities companies must navigate during mergers and acquisitions, especially when facing opposition from a portion of the shareholder base.
Following the merger, the new company’s structure is comprised of three main sectors:
1) Energy, Infrastructure, and Utilities: This sector focuses on the fundamental aspects of energy and public utilities, providing a stable base for the company’s operations.
2) Digital Business: This includes telecommunications infrastructure and smart technology services, with ADVANC leading in offering these essential services.
3) Other Digital Ventures: Under the umbrella, Gulf Edge (GE) plays a pivotal role as a subsidiary focused on investing and developing digital infrastructure and services. GE’s portfolio is diverse:
- Satellite Telecommunications: Operates under Thaicom Public Company Limited (THCOM), a leading provider in Asia.
- Digital Asset Exchange Center: Managed under Binance Thailand (Binance TH), facilitating digital asset trades.
- Data Centers: Managed by GSA Data Center Ltd. (GSA), supporting data storage and management needs.
- Cloud Business: Collaborating with Google Cloud to enhance cloud computing services.
This new company structure not only diversifies the business but also positions the company at the forefront of technological advancements and digital transformation, ensuring robust growth and sustainability in a digital age.
