Dtac and True have held separate board meetings regarding the ongoing merger process between the companies.
The boards of directors approved to call for a joint shareholder meeting on 23 February to conclude on final matters before closing. Subject to satisfactory outcome of the remaining procedural steps, the parties aim to complete the transaction within the first quarter of 2023.
The new company will become a telecom tech frontrunner with business operations in mobile, broadband, television and digital, ensuring that Thai consumers get value and benefit of a broader portfolio of attractive products and new service innovations. Additionally, the new company will benefit from scale, investment capabilities and competence to take 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 completes, companies jointly owned by CP Group and Telenor Group will offer to buy shares from shareholders which dissented to the amalgamation. This applies to around 10 % of the existing shareholders in Dtac. CP group and Telenor aims for an equal ownership stake of around 30 percent in the new company.
With this transaction Telenor takes another important step in execution of the strategy outlined at the 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, but also create value for Telenor shareholders by strengthening the portfolio in Asia. Going forward, Telenor will focus on realising synergies from the two mergers and at the same time explore further strategic opportunities for Telenor Asia as a separate entity.