InTouch welcomes Gulf share move

SET-listed InTouch Holdings regards the move by Gulf Energy Development Plc, the country’s top power generation firm by capacity, to acquire a 14.39% stake in the company as a “positive” note, saying this reflects the holding’s attractive dividend yield and favourable business direction.

InTouch Holdings reported to the Stock Exchange of Thailand (SET) that Gulf on Dec 28 held 461 million ordinary shares, accounting for 14.39% of the firm’s paid-up capital.

Gulf has become the second biggest shareholder of InTouch, trailing only Singtel Global Investment from Singapore, which still holds 673 million shares — 21% of shareholding in the firm.

Gulf caught media attention in June last year when it acquired 147 million shares of InTouch, making it the fourth largest shareholder with a 4.59% stake in the holding firm at that time.

In October, it notified the SET it held 320 million ordinary shares of InTouch, accounting for 10% of total issued and paid-up shares in the holding company.

Tomyantee Kongpoolsilpa, senior vice-president for portfolio management and investment relation at InTouch Holdings, said the company is aware of the move by Gulf’s board to increase share holding since last year.

She was referring to Gulf board’s resolution to level up the investment in InTouch’s shares from 10% to up to 15% of the total issued and paidup shares.

“This is a positive sign for us as the big corporate is interested in investment in InTouch’s stake until it has become the second biggest shareholder of the holding,” Ms Tomyantee said.

She said Gulf’s business now is not directly related to InTouch, which holds a 40.45% stake in Advanced Info Service (AIS), the country’s biggest mobile operator by subscribers.

She declined to discuss whether Gulf management held talks with other major shareholders at InTouch about its investment purpose.

She said she had no idea why Gulf has neither publicised the investment nor sent someone to sit on InTouch’s board.

“At least Gulf ’s move reflects InTouch’s value in terms of dividend yield and business direction for long-term investment,” Ms Tomyantee said.

Pisut Ngamvijitvong, senior director of the analysis department at Kasikorn Securities, concedes he is still curious about Gulf’s move to invest in InTouch.

First, Gulf has made a huge investment in InTouch although its business has no links with InTouch’s subsidiaries so far, while there is no clear business synergy plan from the firm, he said.

Second, Gulf has not yet sent someone to sit on InTouch’s board although the firm has become the second biggest shareholder of InTouch.

With around 4% dividend yield of InTouch, this is unlikely to be a core reason why Gulf spent a huge amount on investment in the only company with this yield rate, he said.

Mr Pisut said Gulf may work with InTouch’s subsidiaries in the future, possibly for fibre optics that link power generators from solar rooftops with households and could also be deployed for telecom services.

At least Gulf’s move reflects InTouch’s value in terms of dividend yield and business direction. TOMYANTEE KONGPOOLSILPA Senior vice-president for portfolio management, InTouch Holdings