Singtel announced it divested a 2.8% stake in Gulf Development to institutional investors through a private placement, generating exceptional gains of approximately SGD140 million, as the Singaporean telecom giant moves to redeploy capital toward growth initiatives and shareholder dividends.
Following the transaction, Singtel will hold a remaining 4.95% stake in Gulf Development, valued at roughly SGD1.8 billion, according to a statement the company released Tuesday.
“This divestment underscores Singtel’s concerted efforts to optimise our portfolio as we continue our disciplined approach to capital management,” said Arthur Lang, Singtel’s chief financial officer.
“Gulf Development’s share price has performed strongly since listing, providing an attractive opportunity for Singtel to crystallize value and reallocate capital towards growth and driving shareholder returns,” Lang added.
Sarath Ratanavadi, CEO of Gulf Development. Photo courtesy of the company |
In a separate filing with Thailand’s Securities and Exchange Commission, Sarath, acting through Gulf Holdings, purchased 33.5 million shares at 59 baht apiece for a total of 1.97 billion baht ($59 million), as reported by Forbes.
The acquisition lifted Gulf Holdings’ stake in the company to 4.2% from 3.9%. Combined with his direct and indirect holdings, Sarath now controls approximately 60% of the company.
Singtel had originally acquired a 7.7% stake in Gulf Development in 2025 following the merger of Intouch Holdings and its largest shareholder, Gulf. That deal streamlined Singtel’s investment in its Thai affiliate Advanced Info Service, one of Thailand’s largest mobile carriers, and gave rise to Gulf Development, which ranks among the country’s biggest privately held power producers.
Despite trimming its position in Gulf Development, Singtel views Thailand as a core market. “We continue to have a strong partnership with Gulf Development through our joint investment in AIS and our data centre venture,” Lang said.
The divestment comes as Singtel expands investments in growth areas. The company expects capital expenditure to reach around 3 billion Singapore dollars in its current fiscal year, up from 2.5 billion Singapore dollars a year earlier, as reported by CNBC.
“1.2 billion are really earmarked for growth into data center into AI, which is our GPU as a service for the region, and in particular providing sovereign AI services for Singapore,” Singtel CEO Yuen Kuan Moon said in May.
Sarath’s real-time net worth stands at $16.9 billion, ranking 163rd globally. The founder of Gulf, which he established in 2007, has continued to pursue new business ventures.
In 2024, the company partnered with Google Cloud to develop AI-powered cloud infrastructure in Thailand, while its joint venture with Binance – co-founded by Changpeng Zhao – launched a cryptocurrency exchange in the country. AIS is also part of a consortium that received regulatory approval last year to establish a virtual bank.
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