Singtel adds that it remains undecided about its stake in the new entity as the share price of the latter will only be known when trading starts.

The amalgamation of Advanced Info Service Public Company Limited (AIS) and Gulf is scheduled to be completed on April 1, says Singapore Telecommunications Z74 (Singtel) in a Feb 28 statement.

The telco previously expressed its support for the amalgamation in July 2024. Singtel’s group chief financial officer (CFO), Arthur Lang, had said that the move was “in the best interests of stakeholders to simplify AIS’ shareholding structure” and that the telco is “supportive of this move”.

The amalgamation will remove Intouch as the intermediary company and simplify Singtel’s stake in AIS, its Thai associate. It will also see Intouch and Gulf be dissolved and form a new legal entity to be listed on the Stock Exchange of Thailand (SET)

The shares of the newly formed entity, Gulf Development Public Company Limited (Gulf), are expected to commence trading on the SET on April 3.

Singtel and GULF own respective stakes of 24.99% and 47.37% in Intouch. Intouch, in turn, holds a 40.44% stake in AIS. Gulf, Intouch and AIS are listed on the Thai stock exchange.

In exchange for its stake in Intouch, Singtel will receive a 9% stake in NewCo, which is expected to become one of the largest and most liquid Thai-listed companies. Singtel will also book an estimated gain of $0.4 billion from the amalgamation.

In its Feb 28 statement, Singtel says its shareholding in AIS remains unchanged at 23.32%, with 4.22% held under Raffles Nominees (Pte) Limited.

It adds that it has not come to any decision regarding the option for its stake in the new entity as the share price of the latter will be established upon the commencement of trading.

“Singtel remains committed to being a long-term investor in Thailand and working alongside Gulf to drive AIS’ continued growth and strengthen its position as Thailand’s leading telecommunication provider. We will continue to monitor developments closely and will provide further updates as necessary,” says the telco.

As at 2.47pm, shares in Singtel are trading 4 cents higher or 1.2% up at $3.38.