Thai Billionaire’s Bold Call To Seek Full Acquisition Of Leading Telecom Operator

This story is part of Forbes’ coverage of Thailand’s Richest 2021. See the full list here.

Thai energy tycoon Sarath Ratanavadi doubled down on telecoms with a $17 billion bid to take control of InTouch Holdings and its wireless unit, Advanced Info Service (AIS), Thailand’s biggest mobile phone operator by revenues.

His Gulf Energy shares rose 7% after its April bid, helping to boost Sarath’s net worth by 31% to $8.9 billion. After acquiring 19% of Intouch last year, Gulf Energy is seeking to buy the remaining 81% for 169 billion baht ($5.4 billion). It’s also offered 365 billion baht to purchase 100% of AIS. 

“It’s a good business to acquire,” says Janice Chong, senior director at credit rating agency Fitch in Singapore, pointing to the strong balance sheets and stable cash flows of the two firms. However, Chong says the acquisitions will further strain Gulf’s stretched balance sheet. Another hurdle is convincing shareholders to sell out. Singtel, which owns 21% of Intouch and 23% of AIS, said it was still mulling its options, reiterating an earlier company statement.

Hungry for growth, Sarath, 55, has been diversifying Gulf’s portfolio with investments in green energy, toll roads and ports. Telecoms looks like the right call: Gulf’s first-quarter core profit climbed 158% to 2.4 billion baht from a year ago, bolstered partly by dividends from Intouch.