True Corporation and Total Access Communication (DTAC), Thailand’s second and third largest telecommunications operators, are exploring mergers, which may form a new mobile market giant in the country, challenging the current largest player Advanced Info Service (AIS). DTAC is a holding subsidiary of Norway’s Telenor Group. True is controlled by Charoen Pokphand Group, Norway’s largest business group. China Mobile holds 18% of the shares. Its current asset valuations are respectively US$3.4 billion and US$4.5 billion. The merger will bring them close to AIS’s current asset value of $8.8…
True Corporation and Total Access Communication (DTAC), Thailand’s second and third largest telecommunications operators, are exploring mergers, which may form a new mobile market giant in the country, challenging the current largest player Advanced Info Service (AIS).
DTAC is a holding subsidiary of Norway’s Telenor Group. True is controlled by Charoen Pokphand Group, Norway’s largest business group. China Mobile holds 18% of the shares. Its current asset valuations are respectively US$3.4 billion and US$4.5 billion. The merger will bring them close to AIS’ current asset value of US$8.8 billion.
True currently has 32 million mobile users, while DTAC is 19.3 million and AIS is 43.7 million.
Telenor confirmed the merger negotiations in a statement issued on November 20 at the Oslo Stock Exchange, but pointed out that there were “unresolved issues” and “unsure whether the discussion will reach a final agreement.”
Axiata’s second cooperation in Southeast Asia after the deal in Malaysia
This will be the second time the Norwegian company has cooperated in Southeast Asia this year. Prior to this, it reached an agreement with Axiata Group in June to merge their mobile business in Malaysia with a $15 billion transaction, creating a new market for neighboring countries in southern Thailand. leader.
Insiders said that in Thailand, True and DTAC may form a joint venture under a share swap model.
This news seems to have surprised Thailand’s telecom regulator. If the merger negotiations are successful, the country’s National Broadcasting and Telecommunications Commission convened the managers of the two companies to explain and discuss their business prospects.
