The deal is the largest-ever telco merger in Southeast Asia by combined enterprise value. Telenor and CP Group will be equal partners with a 30.3% ownership stake in the new company.
The new company will operate under the name True Corporation, and the combined entity says it is well placed to serve Thailand’s increasing demand for high-speed data and capture growth opportunities in the fast-changing digital region.
According to a recent Telenor survey, 82% of Thais are expected to significantly increase their mobile usage over the coming years, more so than in any other market surveyed.
“The completion of the transaction is a new milestone in Thailand’s impressive digital journey,” said Jørgen A. Rostrup, executive vice president of Telenor Group and head of Telenor Asia.
“The pace of innovation is expected to accelerate, creating growth opportunities for the country.
“With the completion of the mergers in Thailand and Malaysia, Telenor is expanding its role in Asia, serving over 200 million customers through leading local champions well placed to create value for customers and society.”
In 2022, True served an estimated 55 million mobile customers, 5 million broadband connections and 3.2 million pay-tv subscribers and had EBITDA of US$2.4 billion and revenues of US$6.2 billion.
The new company will have an enterprise value of more than US$20 million.
Following the completion of the deal, the company says it will be able to leverage partners, vendors and local talents to bring more benefits to customers on an expanded network footprint, distribution touchpoints and a broader range of products and services.
The combined entity, along with its partners, aims to raise US$200 million in venture capital to support promising digital startups, focusing on new products and services in the country.
