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SINGTEL does not intend to accept a Thai energy player' s tender offers for its Thai telecoms investments, the mainboard-listed telco announced in a bourse filing on Friday.

 

Rather, Singtel stressed its " continued commitment" to the two companies, which it characterised as in line with ongoing strategic transformation plans.

 

Thai-listed power producer Gulf Energy Development in April launched a bid to buy over stakes in telco Advanced Info Service (AIS), where Singtel has a 23.3 per cent interest and AIS' controlling shareholder Intouch Holdings, where Singtel has a 21.2 per cent ownership.

 

Gulf Energy offered 65 baht (S$2.77) apiece for Intouch securities, and also 122.86 baht apiece for AIS shares if it managed to secure at least 50 per cent of Intouch.

 

However, Singtel has now said that the offer for AIS " significantly undervalues the fair value of AIS" . It added that it " continues to view its investments in Intouch as strategic" , to boot.

 

Citing its position as a major shareholder in Intouch and AIS, Singtel said it planned to " reinvigorate their core businesses" through opportunities such as growing business-to-business digital services and unlocking value from AIS' infrastructure assets, as Thailand digitalises.

 

" Singtel looks forward to working with Gulf, which has complementary strengths and a shared vision to advance Intouch and AIS' 5G and digital leadership," it added in its bourse filing.

 

Singtel' s decision was reached after considering factors such as offer terms, the target companies' opinions, and independent financial advice.

 

Earlier in the day, Singtel had told shareholders at its annual general meeting that " we view our stakes in Intouch and AIS as strategic investments and believe in their long-term outlook" .