True and Total Access Communication (dtac) last week announced that following the completion of the merger due diligence, the Board of Directors of each company has approved the amalgamation and entered into an agreement to create a new telecom-tech company.
The new company, supported by sponsoring shareholders C.P. Group and Telenor Group, aims to meet increasing customer expectations and capture new growth opportunities in a fast-changing digital world. The company is a merger of equals that will combine skills and expertise from True and dtac and offer employees new opportunities at the forefront of digitalization.
The telecommunication business will remain core to the merged company, ensuring that consumers throughout the country benefit from continual improvements in 4G and 5G coverage with better network quality, reliability, and speed. In addition to connectivity services, growth opportunities will be technology driven, leveraging business opportunities within digital services, AI, cloud technology, and connected devices.
The new telecom-tech company aims to support Thailand’s digital transformation in line with the Thailand 4.0 policy by bringing new partnerships and global technology advancements to Thailand. To accelerate and stimulate growth in Thailand’s digital ecosystem, the new company, together with partners, intends to raise USD 100 – 200 million in venture capital, supporting promising digital startups focusing on new products and services that benefit Thai consumers.
The current operations of True and dtac will continue to run their businesses independently until the transaction is completed, which is expected to be within 2022. A joint integration planning project will be established to work on business development, synergies, and transition planning.
Jørgen Arentz Rostrup, Executive Vice President and Head of Telenor Asia
The new company will have scale to both invest in network quality and make technology advancements that meet the changing needs of Thai consumers and support Thailand’s digital growth. This ensures telecom services that are attractive, affordable, and which enable innovation and partnerships for a wide range of new products.
