The Tamesis
True Corp has been deploying 5G networks across Thailand.
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Arise Digital Technology Co., controlled by Supachai Chearavanont, the youngest son of Thai billionaire Dhanin Chearavanont, has agreed to acquire a 24.95% stake in mobile operator True Corp. held by Norwegian telecommunications company Telenor Group for 39 billion crowns ($3.9 billion).
Under the agreement, Arise will buy True shares at 11.70 baht ($0.37) per share, a discount of about 5.6% to Wednesday’s closing price. True shares plunged 16% in Bangkok trading today. Telenor signed a put and call agreement giving Arise the option to purchase the remaining 5.35% of its shares within two years, the Norwegian company said in a statement. statement Thursday.
Telenor invested in Total Access Communications in 2000 and built it into one of Thailand’s leading mobile phone operators. In 2023, Total Access merged with True to create Thailand’s largest telecommunications company with large-scale investments in 5G, artificial intelligence and digital services.
“Based on the agreed sales price and current exchange rates, our holdings are currently worth approximately 39 billion crowns,” Telenor CEO Schilbred Fasmer said in a statement. “Together with our partner True Corp., we have established market leadership in Thailand while also creating shareholder value.”
Upon completion of the initial sale, Telenor will recognize an accounting gain of approximately SEK 14.7 billion. The Forneb, Norway-based company has been streamlining its operations to focus on its Nordic business, which contributes the majority of its revenue. The company agreed to sell its Pakistan operations in 2023.
True is part of CP Group (CP Group), which owns 28.6% of the mobile operator. True has been expanding its digital presence in recent years, partnering with BlackRock last year to invest $1 billion in data centers and roll out a nationwide 5G network. Its fintech arm Ascend Money is building a virtual bank that will leverage its TrueMoney payments platform, which has more than 30 million users.
CP Group is one of the world’s largest producers of animal feed and livestock and is the flagship company of the Chearavanont family. Dhanin and his brother are the second richest people in Thailand with a net worth of US$35.7 billion.
