Shares of True Corporation Pcl, created through a merger between Thailand’s number two and three mobile phone operators, began trading in Bangkok on Friday, marking the culmination of a consolidation process that drew protests from consumer groups and its main rival.
(Bloomberg) — Shares of True Corporation Pcl, created through a merger between Thailand’s number two and three mobile phone operators, began trading in Bangkok on Friday, marking the culmination of a consolidation process that drew protests from consumer groups and its main rival.
The shares opened at 8.30 baht each and was at 8.20 baht by 10:10am in Bangkok. More than 140 million shares changed hands in the first 10 minutes of trading.
With Thai authorities approving the merger of True and Total Access Pcl this week, the new company with 55 million mobile subscribers ended the long reign of Advanced Info Service Pcl as the largest telecom company in Southeast Asia’s second-biggest economy. Advanced Info, backed by Singapore Telecommunications Ltd., ended last year with a total of 46 million mobile users.
True shares have an implied fair value of 10.32 baht each, Kasikorn Securities Pcl said in a report Thursday. The combined market value of the two entities before trading was suspended to complete the merger was 294 billion baht ($8.45 billion).
The merged entity’s enterprise value was about $20.7 billion, according to Jorgen Arentz Rostrup, True’s vice chairman and a nominee of Telenor AS, which owns about 30% in the company. Thai conglomerate CP Group will also hold about 30% in the new company and China Mobile Ltd. about 10%, with the rest being held by minority shareholders.
The new telecom-tech company will combine the best of True and Total Access and the global expertise of its shareholders, True Corporation said in a statement, adding it will also benefit from synergies within its network, digital infrastructure, IT systems, purchasing, sales and marketing, retail channels and operational costs.
“Thai consumers will benefit from this amalgamation. The synergy will lead to fair and balanced competition, which is ultimately in customers’ interest,” True’s Chief Executive Officer Manat Manavutiveth said in the statement.
The new company, together with partners, will raise $200 million in venture capital to invest in digital startups to help accelerate and stimulate growth in Thailand’s digital ecosystem, True said.
(Updates with share in second paragraph.)
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