C.P. Group and Telenor Group on Monday announced that they have agreed to explore the creation of a new telecom-tech company comprising of True and dtac.
The new company will be a merger of equals, and bring the best of the two local companies, with the support of its key sponsoring shareholders. The new company will be a leading telecommunications service provider with capabilities to accelerate Thailand’s progressive digital technology agenda in terms of network performance, innovation, investment strength and employer brand.
The new company has the intention to raise venture capital funding together with partners of USD 100-200 million to invest in promising digital startups focusing on new products and services for the benefit of all Thai consumers. If the transaction proceeds, it will consist of a voluntary tender offer (VTO) subject to satisfaction of conditions for all outstanding shares of dtac and True, followed by the amalgamation of dtac and True creating a new company.
The VTO price for dtac will be THB 47.76, which represents a 25 percent premium to the one-month VWAP for dtac shares, and the VTO price for True will be THB 5.09, which represents a 25 percent premium to the one-month VWAP for True shares. The agreed exchange ratio is 10.221 True shares per dtac share. The outcome of the VTO will determine the final equalized ownership percentage between C.P. Group and Telenor Group.
Sigve Brekke, President and CEO of Telenor Group
We have experienced an accelerated digitalisation of Asian societies, and as we move forward, both consumers and businesses expect more advanced services and high-quality connectivity.
Jørgen A. Rostrup, EVP of Telenor Group and Head of Telenor Asia
The proposed transaction will advance our strategy to strengthen our presence in Asia, create value, and support long-term market development in the region. We have a long-standing commitment to both Thailand and the Asian region, and this collaboration will strengthen it further.
