Gulf paying Bt8.9bn to increase Intuch stake
Gulf Energy Development informed the Stock Exchange of Thailand on Wednesday that the company's board of directors had approved a Bt8.92 billion budget to boost its Intouch Holdings (Intuch) shareholding by up to 5 per cent.
The move by Thailand’s top private power producer is part of an expansion that also saw Gulf take a 40 per cent stake in PTT Natural Gas Co at a cost of Bt2.7 billion earlier this month.
Gulf executive director and CFO Yupapin Wangviwat said that as of December 28, Gulf held 14.39 per cent of Intuch shares, up 4.39 per cent from the 10 per cent it held previously.
"We have confidence that this investment will generate returns to the company in the long term," she said.
An analyst at Asia Plus Securities said Gulf's additional investment in Intuch will help increase the company's revenue by around Bt324.1 million to Bt1.1 billion annually, at earning-per-share of Bt2.3.
"The company has maintained the fundamental value of Gulf shares at Bt38.5 per share, while the share price is likely to increase," said the analyst, advising investors to buy Gulf shares.
