Singtel boosts Intouch stake by acquiring shares from Temasek

Singtel retail outlet at Tiong Bahru PlazaSingtel retail outlet at Tiong Bahru Plaza; photo taken pre-Covid

Singtel is boosting its stake in Thailand’s Intouch Holdings to 24.99 percent from 21.21 percent by acquiring 121.16 million shares from Anderton Investments, which is a wholly owned subsidiary of Singapore state-owned investment company Temasek Holdings, for S$330 million, the telco said in a filing to SGX.

The pricing is a 5 percent discount to the volume-weighted average price (VWAP) of Intouch shares on the Stock Exchange of Thailand (SET) for the 20 trading days before the deal, the filing said.

Intouch is the parent company of Thailand’s largest mobile operator Advanced Info Services (AIS), which has been a regional associate of Singtel since 1999, the filing said.

“Intouch has been delivering good returns supported by consistently strong execution from AIS in one of the region’s most attractive markets. Our increased investment deepens our partnership with Intouch’s largest shareholder Gulf Energy, and is part of our strategy of actively recycling capital to invest for growth and shareholder returns,” Yuen Kuan Moon, Singtel’s group CEO, said in the statement.

“At the same time, it demonstrates our confidence in AIS’ potential to build on its position as the mobile operator of choice and become the leader in digital and enterprise services,” Yuen added.

The deal is expected to be completed by the end of June, the filing said.

Temasek is deemed to be a controlling shareholder of Singtel, holding around 52.47 percent of the telco, which makes the deal an interested person transaction, the filing said.