Telecom regulators to look into the planned merger of DTAC and True

Following Friday’s announcement from two of the largest mobile phone network service providers in Thailand, DTAC and True, on their plans to merge operations, the National Broadcasting and Telecommunications Commission is calling on the companies to discuss the business plans which would likely change the telecom industry and dominate the market.

DTAC’s parent company, Norway’s Telenor group, is meeting with True’s parent company, Charoen Pokphand Group, to discuss plans to merge the two subsidiaries.

The telecom regulators will meet with DTAC representatives today, and with True officials tomorrow, a source told the Bangkok Post. The two mobile companies will have to notify the NBTC 90 days before their merger is agreed, according to Thailand’s rules and regulations.

In a statement to the media, Telenor said…

“There are still unresolved concerns, and there is no guarantee that the conversations will lead to a final agreement.”

True’s chief financial officer, Yupa Leewongcharoen, informed the Stock Exchange of Thailand, or SET, that if any clarification is required, the company will notify the SET.

According to Refinitiv Eikon statistics, DTAC is worth roughly US$3 billion (about 98 billion baht) and True is worth around US$4.5 billion. While True has 32 million total mobile subscribers, DTAC has 19.3 million. The competitor, Advanced Info Service, known as AIS, has 43.7 million subscribers, making it Thailand’s largest mobile operator.

The two companies are likely to form a joint venture based on a share swap arrangement as True is owned by CP to the tune of 50% and China Mobile to the tune of 18% and Telenor owns a 65% stake in DTAC.

SOURCE: Bangkok Post