C.P. Group and Telenor Group support True and dtac in
exploring the creation of a new telecom-tech company
C.P. Group and Telenor Group 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.
Mr. Suphachai
Chearavanont, Chief Executive Officer of C.P. Group and Chairman of the Board
of True Corporation said, “The telecom and technology sectors are key to
enabling Thailand to move up the development curve and to create broad-based
prosperity. As a telecom-tech company, we can help unleash the enormous
potential of Thai businesses and digital entrepreneurs as well as attract more
of the best and the brightest from around the world to do business in our
country.”
“Today is a
step forward in that direction. We hope to empower a whole new generation to
fulfil their potential to become digital entrepreneurs leveraging an advanced
telecom infrastructure. The emergence in Thailand of IoT, AI, Cloud and
new generations of mobile network technologies will have a huge effect on the
way we do everything,” he said.
Mr. Sigve
Brekke, President and Chief Executive Officer of Telenor Group, said, “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. We believe that the new company can take advantage
of this digital shift to support Thailand’s digital leadership role, by taking
global technology advancements into attractive services and high-quality
products.”
Mr. Jørgen A.
Rostrup, Executive Vice President of Telenor Group and Head of Telenor Asia
said, “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. Our access to new
technologies as well as the best human capital will be a vital contribution to
the new company.”
Mr. Rostrup
added that 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.
Source: Telenor Group media announcement
All
shareholders of dtac and True will have the choice of participating in the
tender offer or continue as shareholders in the combined company, which will be
listed on the stock exchange of Thailand. The combined company faces a
challenging operational environment over the next years and C.P. Group and
Telenor Group recognize that not all shareholders may want to participate in
this journey, which is why a cash alternative at an attractive premium is
offered. The involved parties aim to reach the necessary agreements by Q1
2022.
The current
operations of True and dtac will continue to run their businesses independently
until the transaction is completed. The transaction will be subject to
approvals by relevant boards and shareholders and customary regulatory
approvals, and the parties acknowledge that there is no certainty as to the
completion of the transaction.
Source: Telenor Group media announcement
