Singtel’s Thailand associate AIS ordered to pay 31.07 billion baht to TOT Public Company

AIS, Singtel’s associate company in Thailand is ordered to pay 31.07 billion baht (S$1.37 billion), plus interest, to Thai telco, TOT Public Company. That includes a 1.25% interest dated back to 30 Nov 2015.

TOT’s claim relates to alleged unlawful contract amendments dating back to 2001 and 2002 in a cellular mobile telephone service agreement between the two. Following a dispute, TOT had claimed for an additional payment of 62.77 billion baht as it claimed that certain amendments in the agreement resulted in the loss of benefit to TOT.

This is a double blow for Singtel as it’s associate in India is also having some issues.

It may have some impact on Singtel share’s performance in the short term.