In the tropical business landscape of Thailand, drama unfolds as the shareholders of two telecommunication behemoths, Advanced Info Service (AIS) and Thaicom, find themselves at a critical crossroads. The drama peaks when the boards of these giants deliver a firm thumbs down to lucrative acquisition offers extended by their parenting entities, Gulf Energy Development and Intouch Holdings.
Imagine a bustling July morning when Gulf Energy, the financial juggernaut fueling Thaicom’s ambitions, and Intouch Holdings, the master puppeteer at the helm of AIS, declared a vision as grandiose as the tallest skyscraper in Bangkok. Their ambitious call? A merger aimed at crafting a telecom colossus commanding a jaw-dropping valuation of approximately 1.037 trillion baht, a figure as dizzying as a ride atop the iconic Baiyoke Tower II.
Given the nod by the power-broker shareholders of Thai billionaire Sarath Ratanavadi’s Gulf Energy, the merger’s allure seemed hard to resist. This audacious gambit hinged on a scheme to corral a substantial 58.9% of Thaicom’s vital shares at a tempting rate of 11 baht per share. Yet, the shimmering lights of opportunity swung towards a different path. As rumors of the merger danced through the marketplace, Thaicom’s share value gracefully waltzed to a ceremonious 12.3 baht. Yesterday, the value persisted, a tantalizing proposition for shareholders pondering their next move in this corporate theater.
Meanwhile, over at AIS, the action-packed plot thickens. Here, an initial offer of 216.30 baht per share, like a bakery’s freshly baked croissant, was coolly adjusted to a less appetizing 211.43 baht. Not to be outdone, AIS consulted its financial crystal ball, revealing an intrinsic value ranging somewhere between 229.55 baht and 285.70 baht. The shares stood strong, their value finishing 1.1% higher at an impressive 290 baht yesterday, leaving investors scratching their heads in bemusement.
The stage set, the silence from Gulf Energy and Intouch on this high-stakes merger drama leaves industry observers on tenterhooks, eagerly awaiting the next act. Will this telecom titanic sail forth, or is an iceberg of hesitation lurking beneath the corporate waters?
Amidst this merger spectacle, Thaicom has been secretly orchestrating another cosmic maneuver. Towards the end of last year, Thaicom disclosed a strategic celestial plan to reposition the EutelSat satellite—rebranded as Thaicom 9A—to the 50.5° East orbit. This satellite sleight-of-hand is not merely about stars and space; it’s a strategic race against time to ensure Thailand retains its celestial real estate rights, with a looming deadline set to expire tomorrow, November 12.
The satellite orchestra began long before, with Thaicom’s intrepid subsidiary, TC Space Connect, snaffling a prestigious license for this orbit from the authoritative National Broadcasting and Telecommunications Commission (NBTC). Confirming this cosmic chess move, Thaicom’s own Patompob Suwansiri assured the NBTC of Thaicom 9A’s intended relocation, slyly setting the stage for early 2025’s initial act in orbit realignment.
As this telecom tapestry unfurls, the Thai business world watches, enthralled, waiting for the next twist in this tale of corporate ambition, where share prices rise and satellites soar beyond terrestrial confines.
This refusal screams of a lack of vision. Why wouldn’t they seize the chance to lead the industry?
Maybe they see something beyond just merging for growth. Internal focus can strengthen a company independently.
I still feel ignoring such a lucrative deal is short-sighted. Mergers like this are rare opportunities.
A merger would mean massive layoffs and less competition. Better they stay separate.
Isn’t it risky to refuse such high offers? Shareholders might revolt seeing these missed opportunities.
Sometimes stability and gradual value increase is better than a risky leap. What if it backfires?
Remember AOL and Time Warner? Big deals don’t always end well.
Satellite moves are strategic genius! Retaining orbital rights shows their forward-thinking.
Agreed. And in the space race, a little bit of competition might push Thaicom ahead.
So cool to see satellite businesses still thriving! Space really is the next frontier!
The backlash from today’s failed mergers is going to reverberate through the market.
Not all reverberations are bad. Sometimes you just need to ride out the storm.
The future shouldn’t be about squeezing all telecoms into one company. Diversification is key.
Isn’t it crazy how a few satelites can change strategic moves for telecom companies? Planetary!
Absolutely! It’s a whole new realm of business strategy.
Bet the merger convo is just a cover for other shady deals.
I doubt it. High-level deals are usually guarded, but speculation is fun.
True, but without evidence, it’s hard to support such claims.
I’m interested in how the NBTC’s decision regarding satellite licenses impacts future telecom discussions.
NBTC holds power! They can tip the scales one way or another.
Exactly, their policy decisions influence much more than just space matters.
AIS knowing their worth speaks volumes to their strength. Good on them for holding out!
True, if they’ve assessed their value accurately, refusing was smart.
Do corporate behemoths care more about market share or public good? Always feels like their own growth.
Merger or not, telecoms will charge what they want. We’ll pay because we have no choice.
That scarcity argument is depressing yet real. Open markets should drive prices down.
With satellite movements, Thailand could become an Asian hub for space commerce.
Failure to merge might hurt long-term competitiveness. Rival regions might capitalize on hesitations.
Asia’s telecom scene is already fierce. A minor hiccup won’t sink the whole ship.
Perhaps, but complacency is dangerous. Strategic moves are often subtle.