SingTel to pay up to $259 mln to raise stake in Thai AIS
SINGAPORE Nov 5 (Reuters) - Singapore Telecommunications Ltd (SingTel) said it will increase its stake in its Thai affiliate, Advanced Info Services Public Company Limited , to 23.32 percent for up to S$328 million ($258.7 million).
SingTel said late on Friday that its wholly owned subsidiary, SingTel Strategic Investment Pte Ltd, has entered into a conditional agreement with Shin Corporation Public Company Ltd to purchase 61 million ordinary shares in AIS, which represents about 2.05 percent of its issued capital.
The amount payable by SSI for each share will be equivalent to the volume weighted average price of the shares of AIS for the 20 trading days prior to the date of the shareholders meeting, subject to a maximum price of 130 baht each and a minimum price of 119 baht each.
The price range would represent a total consideration of between 7.259 and 7.930 billion baht. The deal is subject to regulatory approvals and the shareholders meeting of Shin Corp.
SingTel, 55 percent owned by Singapore state investor Temasek Holdings, currently has 21.27 percent stake in AIS.
The Singapore telecom company, the largest firm by market capitalisation in Singapore bourse, said the acquisition will not have a material impact on its earnings per share nor its net tangible assets per share for the current financial year ending 31 March 2012. ($1 = 1.268 Singapore Dollars) (Reporting by Harry Suhartono; Editing by Sanjeev Miglani)