Sarath Ratanavadi $17 Billion Bid for Thai Telecom Giants Draws Skeptics

Sarath Ratanavadi, Thailand’s second-richest man, is trying to diversify his empire with a bold bet on digital technology that may cost as much as $17 billion.

He’ll have to do more to convince skeptics that the math adds up.

While shares of Sarath’s Gulf Energy Development Pcl have climbed 4.6% since the company proposed buying control of Thailand’s biggest wireless operator and its parent on Monday, some analysts and investors are worried the cost of added debt won’t be worth the payoff. The acquisitions would combine a group spanning power plants, ports and toll roads with telecom companies that specialize in digital services.

“Gulf may know how to create the synergy, but some investors still haven’t seen this,” said Prapas Tonpibulsak, chief investment officer at Talis Asset Management in…