Total Access Communication (dtac) and True have announced they will meet to finalize the ongoing merger process between the companies, with both parties aiming to complete the transaction in the first quarter of 2023.
In a press release, Telenor, which owns the majority of dtac, said that the new company will become a telecom tech frontrunner with business operations in mobile, broadband, television and digital, ensuring that Thai consumers get the value and benefits of a broader portfolio of attractive products and new service innovations.
Additionally, the new company will benefit from scale, investment capabilities and competence to bring global technology advancements into quality networks and innovative digital services and support Thailand’s digital transformation agenda.
Both principal shareholders, Charoen Pokphand Group and Telenor Group, believe in the benefits of the transaction and the new company’s positive impact on Thailand’s telecom and technology sector.
Before the transaction is completed, companies jointly owned by CP Group and Telenor Group will offer to buy shares from shareholders who dissented to the amalgamation. This applies to around 10% of the existing shareholders in dtac. CP Group and Telenor aim for an equal ownership stake of around 30% in the new company.
With this transaction, Telenor takes another important step in executing the strategy outlined at Capital Markets Day in September last year.
Following the closing of the merger in Malaysia in December, this transaction is another important building block in setting up a strong Asian entity. The transaction creates a leading telecom-tech company in Thailand, which will both empower the local society by providing world-class services and innovation and create value for Telenor shareholders by strengthening the portfolio in Asia.
Going forward, Telenor will seek to realize synergies from the two mergers and, at the same time, explore further strategic opportunities for Telenor Asia as a separate entity.