(March 21): Gulf Energy Development PCL, controlled by Thailand’s richest man Sarath Ratanavadi, has built up a stake worth US$370 million (RM1.64 billion) in commercial lender Kasikornbank PCL.

Gulf Energy’s holding in Kasikornbank has risen to 3.25% as of March 14, up from 0.87% earlier, data from the Stock Exchange of Thailand showed. The purchase made the power producer emerge as Kasikornbank’s fifth largest shareholder, with its 77 million shares valued at 12.5 billion baht (US$370 million) at Friday’s midday closing price of 162.50 baht.

The share acquisition is part of Gulf’s “usual investment” strategy and due to the stock’s high liquidity and dividend payout, chief financial officer Yupapin Wangviwat said in a text message in response to Bloomberg’s query. The company also expects to benefit from a possible rally in Kasikornbank’s share price, she said.

Sarath’s Gulf is set to be merged with Intouch Holdings PCL, the top shareholder in Thailand’s second-biggest telecom company Advanced Info Service PCL. The merged entity will have a market value of about US$25 billion.

Sarath built Gulf into Thailand’s largest power producer and gained control of Intouch by gradually accumulating a 47% stake. He moved to merge Gulf with Intouch last year. Sarath’s net worth is US$12.7 billion as of Thursday, according to data compiled by Bloomberg.

Kasikornbank is Thailand’s second-biggest lender with total total assets of 4.33 trillion baht. Its shares rose as much as 1.3% on Friday, extending gains this year to 4%, bucking a 15% slump in the broader Thai stock benchmark.

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