(Bloomberg) -- Thai billionaire Sarath Ratanavadi’s power and telecom companies extended gains on Friday, as shareholders’ approval bolstered investors’ confidence that their proposed merger will go through.
Shares of Gulf Energy Development Pcl and Intouch Holdings Pcl climbed as much as 3.5% and 3.7% respectively in Bangkok, after almost all shareholders of both companies approved the merger that’s seen to fuel growth. Both stocks are set to close at a fresh record high, valuing the two firms at a combined $30 billion.
The planned merger will help Gulf Energy “consolidate its interests in telecommunications, which would improve overall operational efficiency and growth prospects,” Rasmiman Sermprasert, analyst at Krungsri Securities Co., wrote in a note Friday.
The shareholders’ approvals clear a major hurdle for the deal to proceed. Sarath had been leaning against buying out minority investors who may oppose the combination of the two firms, Bloomberg News reported earlier.
Sarath is CEO and controlling shareholder of Gulf Energy, which owns more than 40% of Intouch.
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