By Dominic Chopping

 

Norwegian telecom provider Telenor ASA said Monday that it and Thai conglomerate Charoen Pokphand Group have agreed to explore a potential merger of the telecom operations of Total Access Communication PCL and True Corp. in Thailand.

Total Access Communication, known as dtac, is Telenor's mobile-phone provider in Thailand. True's telecom operations form part of CP Group's True communications group in the country.

Telenor said it believes there will be significant opportunities in Asia coming from digitalization and technical advancements in the coming years, and the proposed transaction will create a company with around 55 million customers and pro forma revenue of around $6.9 billion in 2020.

If the transaction proceeds, it will be a merger of equals and will consist of a conditional voluntary tender offer for dtac and True, followed by an amalgamation of the two companies, the company said.

The per-share offer price for dtac will be 47.76 Thai baht ($1.46), which represents a 25% premium to the one-month volume-weighted average price, and the offer price for True will be THB5.09, which also represents a 25% premium to the one-month VWAP, the company said.

The agreed exchange ratio is 10.221 True shares per dtac share, the company said.

Telenor and CP Group will aim for an ownership share of around one third each in the merged entity, with the company listed on the Stock Exchange of Thailand. The parties aim to reach the necessary agreements by the end of the first quarter of 2022, the company said.

 

Write to Dominic Chopping at dominic.chopping@wsj.com

 

(END) Dow Jones Newswires

November 22, 2021 02:52 ET (07:52 GMT)

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