True's search for partner to resume after fund established

Meanwhile, a CAT Telecom source said TrueMove has reached a preliminary agreement to transfer to the state agency 4,500 of the 7,000 telecommunications towers it utilises under its concession with CAT. Ownership of the 4,500 towers is at the centre of an arbitration dispute between CAT and TrueMove. 

TrueMove has also proposed buying back the 4,500 towers from the state agency and including them in the infrastructure fund’s assets. 

Information and Communications Technology Minister Anudith Nakornthap said CAT had informally notified him of this buy-back proposal. He added that it might not be quickly achieved, as the buy-back plan would be subject to the regulations of the state enterprises involved, while the targeted telecom towers would have to be valued.

Among the key assets True plans to sell to the fund are 13,000 telecommunications towers. TrueMove has 7,000 telecom towers, while True Corp has 6,000 of its own. BFKT (Thailand), a unit of True group, has 1,400 towers. 

However, TrueMove and CAT are still locked in arbitration over the unclear ownership of 4,500 telecom towers. CAT has urged TrueMove to start transferring these assets to it. Under the rules of the concession, TrueMove will have to transfer the assets to CAT within 90 days of the end of the concession on September 15. 

Noppadol said True Corp had stopped its talks with a number of companies on a possible strategic partnership, in order to focus on fund-raising first. Once the fund is completely set up, the company will be ready to resume talks on the matter. The fund is expected to be completely set up by October.

When asked how many shares the True group is considering offering to a potential strategic partner, he said the amount would be in line with what is allowed under the relevant law. The group has yet to conclude which of its businesses would offer shares to the potential partner.

The Telecom Business Law caps foreign shareholding in local telecom operators at 49 per cent. True has continually insisted that if it wants to sell shares to a foreign partner, it would offer a maximum 25-per-cent stake to enable it to maintain the biggest say in the company’s management. 

True Corp plans to raise not less than Bt70 billion via the infrastructure fund to repay debts and for future business expansion. Its board on July 19 approved the company and/or its subsidiaries entering transactions for an infrastructure fund, and announced that it was preparing to apply to the Office of the Securities and Exchange Commission for the fund’s establishment. The company and/or its subsidiaries plan to sell telecom towers, core fibre-optic cable network, broadband networks, and the rights to revenue from equipment rental to the fund. 

The company and/or juristic persons designated by the company will also acquire a 33-per-cent stake in the fund. The company and/or its subsidiaries will also lease back or lease/sub-lease assets for a term of no more than 15 years, having a transaction size not exceeding Bt55 billion. 

Last week the board also approved the company and/or its subsidiaries to sell ordinary shares in eight non-core business subsidiaries to Thana Telecom Corp, which is a subsidiary of True’s major shareholder, Charoen Pokphand Group, for Bt5.4 billion.