Major telecom companies in Thailand eye merger
The second- and third-largest telecom operators in Thailand, True Corporation and Total Access Communication (DTAC), are exploring a merger which could form a new mobile market giant in the country, challenging the current largest player, Advanced Info Service (AIS).
DTAC, which is a majority-owned unit of Norway’s Telenor Group, and True, which is controlled by the country’s largest business conglomerate Charoen Pokphand Group and in which China Mobile holds an 18-per cent stake, are currently valued in terms of assets at $3.4 billion and $4.5 billion, respectively. A merger would bring them close to AIS’ current asset value of $8.8 billion.
True currently has a total mobile subscriber base of 32 million while DTAC has 19.3 million and AIS has 43.7 million.
Telenor in a statement to the stock exchange in Oslo on November 20 confirmed the merger talks, but noted that there were “open issues outstanding” and there was “no certainty that the discussions will result in a final agreement.”
Second tie-up in Southeast Asia after Axiata deal in Malaysia
It would be the Norwegian firm’s second tie-up in Southeast Asia this year, following a deal in June with Axiata Group to merge their mobile operations in Malaysia in a $15-billion transaction, creating a new market leader for Thailand’s southern neighbour.
In Thailand, True and DTAC are likely to form a joint venture under a share swap model, insiders said.
The announcement came seemingly as a surprise for Thailand’s telecom regulator. The country’s National Broadcasting and Telecommunications Commission summoned managers of both companies for explanations and a discussion of the prospects of their businesses if the merger negotiations succeed.
The second- and third-largest telecom operators in Thailand, True Corporation and Total Access Communication (DTAC), are exploring a merger which could form a new mobile market giant in the country, challenging the current largest player, Advanced Info Service (AIS). DTAC, which is a majority-owned unit of Norway’s Telenor Group, and True, which is controlled by the country’s largest business conglomerate Charoen Pokphand Group and in which China Mobile holds an 18-per cent stake, are currently valued in terms of assets at $3.4 billion and $4.5 billion, respectively. A merger would bring them close to AIS’ current asset value of $8.8...
The second- and third-largest telecom operators in Thailand, True Corporation and Total Access Communication (DTAC), are exploring a merger which could form a new mobile market giant in the country, challenging the current largest player, Advanced Info Service (AIS).
DTAC, which is a majority-owned unit of Norway’s Telenor Group, and True, which is controlled by the country’s largest business conglomerate Charoen Pokphand Group and in which China Mobile holds an 18-per cent stake, are currently valued in terms of assets at $3.4 billion and $4.5 billion, respectively. A merger would bring them close to AIS’ current asset value of $8.8 billion.
True currently has a total mobile subscriber base of 32 million while DTAC has 19.3 million and AIS has 43.7 million.
Telenor in a statement to the stock exchange in Oslo on November 20 confirmed the merger talks, but noted that there were “open issues outstanding” and there was “no certainty that the discussions will result in a final agreement.”
Second tie-up in Southeast Asia after Axiata deal in Malaysia
It would be the Norwegian firm’s second tie-up in Southeast Asia this year, following a deal in June with Axiata Group to merge their mobile operations in Malaysia in a $15-billion transaction, creating a new market leader for Thailand’s southern neighbour.
In Thailand, True and DTAC are likely to form a joint venture under a share swap model, insiders said.
The announcement came seemingly as a surprise for Thailand’s telecom regulator. The country’s National Broadcasting and Telecommunications Commission summoned managers of both companies for explanations and a discussion of the prospects of their businesses if the merger negotiations succeed.
