Thailand’s dtac (Digital Total Access Communication) and True Corporation are merging their operations in the market.
Following Friday’s report that parent firms Telenor Asia and CP (Charoen Pokphand) Holding were considering the action, TeleGeography now reports that a merger proposal has been signed today. Under the agreement, the companies will create a merged entity via an equal partnership.
The firms indicated that the merged unit would apply to be listed on the SET, and have agreed to a different share swap ratio for each operator: one existing share in dtac will equate to 24.5 shares in the new unit, compared to one share in True for 2.4 shares.
Telenor and CP Holding have formed a joint venture known as Citrine Global Company which will make a conditional voluntary tender offer for all shares in the two operators, with one share in True valued at THB5.09 (USD0.15) and one dtac share valued at THB47.76.
The Thai mobile market has already seen some consolidation this year, with state-backed operators CAT Telecom and TOT merging to form National Telecom (NT) in January 2021. Singtel-backed AIS (Advanced Info Service) leads the market with a share of around 44.5%, while True Corp and dtac respectively have around 32.6% and 19.6%. The merged entity will therefore take a market share of over 50%, placing it ahead of AIS.