- See SingTel's announcement dated 16 July 2024. There are essentially two transactions.
- The first is to amalgamate Intouch and Gulf Energy Development (Gulf Energy) assets in a new company (NewCo).
- - Read this at SGinvestors.io -
What's new
- A new company (NewCo) will be created to own SingTel’s 24.99% stake in Intouch and Gulf Energy Development’s assets such as gas-fired and renewable power plants. In exchange, SingTel will own 9.08% of NewCo and receive S$135mil in special dividends.
- SingTel and Gulf Energy will launch a voluntary tender offer for the 36.25% stake in Advanced Info Service (AIS) they do not own. The offer price of Bt216.30 per share is below the closing price of Bt220. Therefore, we assume SingTel’s stake in AIS will remain unchanged at 23.31%.
Our view
- - Read this at SGinvestors.io -
- We believe the trade-off is lower dividends from Intouch into a faster-growing NewCo, propelled by the planned build-up of energy assets.
- The eventual listing of NewCo shares above the implied Bt45 per share will be a value-accretive catalyst.
Investment recommendation
- Read more at SGinvestors.io.
