Thailand-based AIS advised shareholders to reject a tender from its largest shareholders to acquire it because the offer is significantly lower than its fair valuation.

In a stocking market filing, AIS cited an independent financial adviser suggesting shareholders should consider rejecting the offer because the valuation range for its common stock is 8.6 per cent to 35.1 per cent lower than the figure calculated using a market value approach and sum of the parts method.

Shareholders of Intouch Holdings, the majority owner of the mobile operator, and Gulf Energy Development approved a proposed merger in July 2024.

Gulf Energy holds 47.4 per cent of Intouch Holdings, which has a 40.4 per cent stake in AIS.

Singtel owns about 25 per cent of Intouch Holdings.

As part of the proposed restructuring, Gulf Energy and Intouch Holdings also offered to buy 58.9 per cent of satellite service provider Thaicom.

Gulf Energy already owns 41.1 per cent of Thaicom.

Its share price increased above the offer price, prompting Thaicom’s board to advise shareholders to reject the THB11 ($0.32) per share bid unless the market price falls below this level.