Telenor in Thailand agrees to merge with competitor

Norwegian telecom giant Telenor has agreed an agreement to merge Thai subsidiary Dtac with rival True. The company is owned by Thai Charoen Pokphand Group.

We believe that the new company can take advantage of digital transformation to support Thailand’s leading role in digitization. We will do this by embracing global technological developments and by offering attractive services and high-quality products, CEO Sigve Brekke says in a press release.

55 mill. Client

If the transaction is approved, a voluntary offer is made of all the shares outstanding in the two companies, followed by a merger. The parties aim to leave a third of the ownership of the merged company, which is to be listed on the Stock Exchange of Thailand.

The new company will have nearly 55 million customers and total sales for 2020 of about NOK 62 billion. Telenor and CP Group aim to complete the company’s review within the first quarter of next year.

The combined company will also raise investment capital between $100 million and $200 million, up to 1.8 billion kroner, to invest in digital start-ups, the report said.

In the press release, CP Group CEO Suphachai Chearavanont emphasized that the telecommunications and technology sectors are fundamental to Thailand’s development and growth.

As a telecom and tea company, we can help unlock the huge potential of Thai businesses and digital entrepreneurs. It will also allow us to attract the best from around the world to do business in Thailand, he says.

To promote Asian participation

As discussions about the merger became known ahead of the weekend, analyst Peter Kongslie at Sparebank 1 Markets . wrote It is clear that Telenor is trying to leave Asia..

Executive Vice President Jurgen A. Rostrup, president of Telenor Asia, however, said the deal would strengthen Telenor’s presence in the region.

– We have a long-term commitment, both in Thailand and in Asia, and it will be further strengthened through this cooperation. Our access to new technologies, as well as the best human capital, will be a very important contribution to the new company, he said in Monday’s press release.

Telenor Senior Director Sigve Brekke was the most pivotal person in the Telenor initiative in Thailand. He has a close relationship with companies in Asia as President of the Region, and was the Senior Director of Dtac, which will now be incorporated.

Charoen Bokpand Group is one of the largest conglomerates in Asia, which is controlled by Dhanin Chearavanont and his family. The family is one of the richest families in Southeast Asia with a fortune of $12.7 billion, according to Forbes magazine. The family is also known to have very good political relations in Thailand and China.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.