True Corporation (True) and Total Access Communication (DTAC) have announced their agreement to merge and create a new telecom giant, forming the second-largest mobile operator in the country.
The executive boards of both companies have decided to call the merged company True Corporation and a joint shareholders’ meeting is scheduled for February 23 to approve the new corporate structure and other details related to the amalgamation. The merger will be completed within the first quarter of this year and the companies will continue to serve customers under the existing True Move and DTAC brands for at least the next three years.
The proposed merger will result in a total of 55 million mobile subscribers, compared with 45 million for the current market leader Advanced Info Service Plc (AIS).
True and DTAC have noted that the merger is about more than just the mobile market, and plan to build on True’s existing strengths in broadband internet, pay TV, and digital services, as well as investing in new technologies that will benefit consumers. The joint shareholders’ meeting will also vote on board members for the new company, with Manat Manavutiveth, the current co-president of True, nominated as the chief executive officer, and Sharad Mehrotra, the current CEO of DTAC, as his deputy.
True and DTAC will each hold a 30% stake in the new company. TRUE shares closed on Thursday on the SET at 4.84 baht, down 2 satang, in trade worth 267 million baht. DTAC shares rose 25 satang to 46.25 baht, in turnover worth 1.1 billion baht.
The National Broadcasting and Telecommunications Commission (NBTC) set the condition that the companies will continue to serve their customers under the existing True Move and DTAC brands for at least the next three years. A consumer group challenged the NBTC decision in the Central Administrative Court in December, but it rejected a petition for an injunction to halt the deal. (NNT)
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