GULF Denies 1.25 Billion Baht Payment Liability in Satellite Concession Dispute
GULF Development denies liability for a 1.25 billion baht penalty in a satellite concession dispute with Thailand's Digital Economy Ministry, claiming it completed contractual obligations and returned all assets in 2021.
GULF Development filed a disclosure with the Stock Exchange of Thailand on September 7 addressing cabinet approval for the Digital Economy and Society Ministry to take legal action against Thai Com and GULF regarding a domestic satellite communications concession agreement. The notice alleged Thai Com may not have fully returned assets and could face a penalty of approximately 1.25 billion baht.
GULF stated that InTouch Holdings and Thai Com were the original concession partners with the ministry, with Thai Com operating the satellite service under a 30-year concession that ended as scheduled. Thai Com completed its contractual obligations and fully returned all concession assets to the ministry on September 11, 2021.
Following GULF's merger with InTouch on April 1, 2019, GULF assumed all of InTouch's assets, liabilities, rights, and obligations, including its position as a party to the concession dispute. GULF said it will exercise its legal rights to defend the company's interests should arbitration proceedings commence.
As of the filing date, GULF stated it has no legal obligations or liabilities as reported in the news and is under no obligation to pay 1.25 billion baht to the ministry. The company committed to reporting any further developments to the Stock Exchange and shareholders.
