SHARES of True Corporation, created through a merger between Thailand’s number two and three mobile phone operators, will start trading in Bangkok on Friday (Mar 3), marking the culmination of a consolidation process that drew protests from consumer groups and its main rival.
With Thai authorities approving the merger of True and Total Access this week, the new company with 55 million mobile subscribers ended the long reign of Advanced Info Service as the largest telecom company in South-east Asia’s second-biggest economy. Advanced Info, backed by Singapore Telecommunications, ended last year with a total of 46 million mobile users.
True shares have an implied fair value of 10.32 baht each, Kasikorn Securities said in a report on Thursday. The combined market value of the two entities before trading was suspended to complete the merger was 294 billion baht (S$11.4 billion).
The merged entity’s enterprise value was about US$20.7 billion, according to Jorgen Arentz Rostrup, True’s vice chairman and a nominee of Telenor, which owns about 30 per cent in the company. Thai conglomerate CP Group will also hold about 30 per cent in the new company and China Mobile about 10 per cent, with the rest being held by minority shareholders.
The new telecom-tech company will combine the best of True and Total Access and the global expertise of its shareholders, True Corporation said in a statement, adding it will also benefit from synergies within its network, digital infrastructure, IT systems, purchasing, sales and marketing, retail channels and operational costs.
“Thai consumers will benefit from this amalgamation. The synergy will lead to fair and balanced competition, which is ultimately in customers’ interest,” True’s chief executive officer Manat Manavutiveth said in the statement.
Source : THE BUSINESS TIME
March 24, 2023
