Thai billionaire Sarath Ratanavadi lifts Gulf’s stake in Kasikornbank to 10%, drawing Bank of Thailand scrutiny as markets rally. He calls the $1.5bn move routine and rules-based, as analysts praise the bank’s strong yield, liquidity and valuation metrics.
One of Thailand’s top business tycoons, last Thursday, acted to curb speculation over his latest banking move. Through his conglomerate, Gulf Development Public Company Limited, he raised his shareholding in Kasikorn Bank, one of the kingdom’s leading lenders. The disclosure last week drew swift market attention. In response, the Bank of Thailand ordered increased oversight under its statutory authority. Mr Sarath Ratanavadi said the purchase was a straightforward investment decision. He warned analysts not to overthink it.
One of Thailand’s most powerful businessmen has moved to shut down rampant speculation after news of a high-profile banking investment emerged last week. The transaction drew extensive coverage in Thailand and on international business websites. At the centre is Sarath Ratanavadi, chief executive of Gulf Development Public Company Limited.
On Sunday, February 15, news emerged that Gulf had increased its stake in Kasikornbank to 10%. As a result, the move triggered immediate regulatory scrutiny.
However, Sarath on Thursday insisted the acquisition was routine. He stated that the purchase followed established market mechanisms. Because both companies are listed, he said the process was transparent.
Sarath says Kasikornbank stake increase follows normal Stock Exchange rules and market practice
In particular, he cited the rules of the Stock Exchange of Thailand. According to him, buying and selling shares on the exchange is a normal practice. Whether holdings are short-term or long-term, he said, the principle is unchanged.
Moreover, he stressed there are no restrictions on which stocks can be purchased. Likewise, there are no limits on how many shares can be acquired. Otherwise, he noted, a company would need to be privately held.
Furthermore, Sarath said the investment adds value to Gulf and its shareholders. Therefore, he described it as a straightforward investment decision.
At the same time, he rejected suggestions of hidden motives. Instead, he framed the purchase as a market-driven move. If the share price is favourable, he said he may sell. Conversely, he added that increasing the stake remains possible. Above all, he urged observers not to overinterpret the transaction.
Gulf doubles Kasikornbank stake to 10% as Bank of Thailand steps up oversight
Gulf first disclosed a 5.03% stake in Kasikornbank in May 2025. Subsequently, it continued buying shares in the open market. By November last year, the holding exceeded 5%. Previously, it stood at 4.53% on March 13, 2025. Now, Gulf holds 10.03%. Consequently, it has become the second largest shareholder in the bank. The largest shareholder is Thai NVDR, a unit of the Stock Exchange of Thailand.
Following the disclosure, the Bank of Thailand responded. The central bank said it is monitoring the increased shareholding. In addition, it stated that Kasikornbank will be placed under intensified supervisory oversight.
Under existing regulations, reporting thresholds are clear. Shareholders with at least 5% of paid-up capital must notify the regulator. Moreover, those reaching 10% must obtain prior approval.
Somchai Lertlarpwasin, assistant governor for financial institutions supervision, confirmed the process. He said Kasikornbank had already reported Gulf’s holding when it crossed 5%. Therefore, the regulatory framework had been engaged earlier.
Shares surge as analysts back investment and highlight dividend yield and liquidity strength
Meanwhile, markets reacted swiftly. Kasikornbank shares rose as much as 2.8% in early afternoon trading in Bangkok on February 15. As trading progressed, the stock headed toward its highest close in seven years.
At the same time, Gulf Development shares gained as much as 3%. Based on Kasikornbank’s closing price on Friday, Gulf’s investment is valued at about 46 billion baht, or roughly $1.5 billion. Accordingly, the stake represents a substantial financial position.
Some analysts responded positively. For example, Chaiwat Arsirawicai of Innovest X Securities issued a research note. He said he held a favourable view of Gulf’s additional acquisition. Specifically, he described Kasikornbank as a stock with high liquidity. In addition, he cited a low price-to-book value and a low price-to-earnings ratio. Furthermore, he highlighted a dividend yield of about 7% to 8% a year. The investment forms part of Gulf’s broader diversification strategy. Originally founded in 2007 as an energy producer, the company has since expanded significantly. Over time, it has grown into one of Thailand’s largest conglomerates.
Diversification drive links banking stake to telecoms, fintech and reported virtual bank ambitions
Today, it operates across energy, telecommunications and digital infrastructure. For instance, it holds interests in data centres and a cryptocurrency exchange. Moreover, Gulf is the top shareholder in Advanced Info Service, known as AIS. AIS is Thailand’s second-largest mobile carrier by revenue, following the merger of Total Access Communication and True Corporation in recent years.
According to Chaiwat, the deeper stake in Kasikornbank could deliver future synergies. In particular, he pointed to digital lending and fintech opportunities.
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Notably, AIS and its partners secured one of three virtual bank licences awarded by the Bank of Thailand last year. For Sarath, virtual banking aligns with Gulf’s digital infrastructure expansion.
Financially, Sarath has a real-time net worth of $17.3 billion. As such, he ranks among Thailand’s wealthiest individuals. Most of his wealth derives from his stake in Gulf. Currently, the company has a market capitalisation of about $28 billion. In conclusion, Sarath has maintained that the Kasikornbank acquisition complies fully with market regulations. He has repeatedly described the transaction as a standard capital market operation.
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