Gulf Energy Development PCL (GULF), one of Thailand’s largest electricity-generating firms, announced that the Board of Directors has approved its acquisition of up to 10 per cent of ordinary shares in INTUCH Holdings PCL (INTUCH) from 7.99 per cent.
The transaction would be made through the Stock Exchange of Thailand (SET) – or by any other means as deemed appropriate under the laws and regulations of the Securities and Exchange Commission (SEC) and SET.
As of August 21, 2020, GULF holds a mere 256 million of ordinary shares in INTUCH, accounting for 7.99 per cent of the total issued and paid-up shares.
Yupapin Wangviwat, the GULF executive director and chief financial officer, revealed that the company was confident that the investment would gain returns in the form of dividends regularly and sustainably.
Earlier, Enquistock noted that experts believed that GULF’s move to own more of INTUCH could be possible as the company’s struggling with the economic recession in 2020.
GULF’s goals of earning a 4-5 per cent dividend yield might be difficult to achieve as INTUCH’s revenues from most businesses were also facing contraction due to the coronavirus pandemic, said experts.
The company recorded its net profit at 1,881 million baht, or an increase of 17.3 per cent year-on-year from 1,603 million baht, recovering from a net loss of 413 million baht in the first quarter of 2020.
During Friday’s morning trade, GULF shares opened at 33.75 baht per share and stood at 33.00 baht per share at 11:04 a.m., down -1.49 per cent or -0.50 baht.
