Shares of THCOM sees sharp drop after GULF makes a tender offer at nearly 20% below market price

Shares of Thaicom Plc (THCOM) was among the most actively traded stocks in early morning trade today after energy giant Gulf Energy Development Plc (GULF) announced that it was buying the 41.13% stake held by GULF’s subsidiary – Intouch Holding Plc (INTUCH) in THCOM at 9.92 Baht a share.

Shares of THCOM were the 3rd most active shares traded on the Stock Exchange of Thailand (SET) after the announcement made by INTUCH to the SET this morning in which the telecom giant said that it was selling its entire 41.13% stake in THCOM to GULF and GULF would thereafter make a tender offer for the remaining shares.

The shares hit a low of 11.80 Baht before recovering to around 12 Baht in the early hours of trading.

INTUCH is 46% held by GULF and therefore the sale of THCOM is a related transaction.

There was no reason cited for the low valuation that GULF is paying to INTUCH even though shares of THCOM has not been trading at the price offered since late August 2022. THCOM has turned around to making profits and in the 6-months ending June 2022 the firm had reported a net profit of 359.87 million Baht against a profit of mere 143.64 million in 2021 and 513.78 million Baht seen in 2020.

shares of thcom sees sharp drop after gulf makes a tender offer at nearly 20% below market price

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