Telenor joins the merger in the Thai telecom market

The two have «entered into an agreement to explore the possibility of establishing a new telecommunications and technology company consisting of True and dtac. The new company is formed by merging two equal parties, and will build on the strengths of the two local companies with strong support from its main shareholders, it is stated in a Message night to Monday.

– Leading role in digitization

– We have experienced an accelerated digitalisation of Asian society, and in the future both consumers and companies will expect more advanced products and services of high quality, says Sigve Brekke, CEO of Telenor Group.

– We believe the new company can benefit from the digital shift to support Thailand’s leading role in digitization. We will do this by adopting global technological advances and by offering attractive services and quality products, he continues.

If the transaction is approved, a voluntary offer will be made for all outstanding shares in dtac and True, followed by a merger of the companies in a new company, the announcement states.

Will raise up to 1.8 billion

– For many years, we have established a close relationship with both Thailand and the Asian region, and this collaboration will further strengthen it, says Jørgen A. Rostrup, Executive Vice President of Telenor Group and Head of Telenor Asia.

He states that the new company intends to raise financing together with partners of 100-200 million US dollars, between 900 million and 1.8 billion Norwegian kroner. This will be used to invest in digital start-up companies in new products and services that will benefit Thai consumers, it is said.

– Important for Thailand’s development

Suphachai Chearavanont, CEO of CP Group and Chairman of the Board of True Corporation, emphasizes that telecom and technology are important for Thailand’s development.

– As a telecommunications and technology company, we can help unleash the enormous potential of Thai companies and digital entrepreneurs. It will also allow us to attract the best from all over the world to do business in Thailand, he says.

Listed in Thailand

An exchange ratio of 10,221 True shares per dtac share has been agreed. All shareholders in dtac and True will have the choice between participating in the offer or continuing as shareholders in the new company, which will be listed on the stock exchange in Thailand, Telenor states.

The parties aim to complete the necessary agreements by the first quarter of 2022. The transaction must be approved by relevant boards and shareholders. In addition, standard regulatory approvals must be in place.

The parties acknowledge that it is not certain that the transaction will be completed, it says.

Major player

True controls TrueVisions, which is Thailand’s largest player in cable TV, and has the same position as an Internet provider through True Internet, according to Wikipedia. Through TrueMove H, the company is also among the country’s largest in mobile telephony.

According to E24 True stated in its latest quarterly report to have 32 million subscribers, while dtac reported 19.3 million subscribers.

Charoen Pokphand Group – or CP Group – is the country’s largest privately owned company and has operations in a number of sectors, such as real estate and food.

(©NTB)

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