TrueMove towers won't be included in fund

“We’ve decided to take out all the telecom towers of TrueMove – which are still under dispute with CAT Telecom – from the fund, but this will not affect our fund establishment plan,” chief financial officer Noppadol Dej-Udom said last week. 

He confirmed that plans for the fund’s offering were still on track.

True’s board approved plans last month to set up the fund to raise at least Bt70 billion to repay debt and finance expansion. 

The plan included the sale of telecom assets including 13,000 towers worth about Bt15 billion, core fibre-optic cable networks, broadband networks and the rights to the income from equipment rental to the fund. It will also acquire a 33-per-cent stake in the fund. 

TrueMove has 7,000 telecom towers under its concession from CAT. True has 6,000, while its subsidiary BFKT (Thailand) has 1,400.

Under the concessions granted by state enterprises, private holders are required to transfer their network assets to the state enterprises after their concessions end. TrueMove’s concession expires on September 15, but CAT and TrueMove have yet to settle which of them owns these 7,000 telecom towers. 

Earlier both subjected 4,500 telecom towers out of the total of 7,000 to arbitration. The panel recently dismissed the case, saying they should wait until TrueMove’s concession ends.

This ongoing dispute between CAT and TrueMove has raised concerns that the fund might not get off the ground.

Last Friday True informed the Stock Exchange of Thailand that it has postponed an extraordinary shareholders’ meeting scheduled for September 12 to vote on setting up the infrastructure fund and selling shares in non-core businesses. It cited the need to allow its independent financial adviser more time to study the proposals and provide its opinions to shareholders. True will next month set a new date.

Noppadol said the fund’s establishment not only involves the Securities and Exchange Commission (SEC) but also other parties, including the National Broadcasting and Telecommunications Commission and CAT. The fund manager, SCB Asset Management, needs time to clear all issues with all parties.

“It’s not a big issue, just about regulatory matters, which will be finished soon. The fund will be definitely issued this year. The more we delay, the more the risk,” he said.

A CAT source said some CAT board members believe that CAT should send a letter to inform the SEC that TrueMove and CAT have yet to settle the dispute on the ownership of the telecom towers.

CAT CEO Kitisak Sriprasert said CAT and True would together seek ways to gain more revenue from the contested assets. 

“We have good mutual relations, so we’ll find the best way out for us” he said.

According to a telecom analyst, True has to service Bt6.5 billion in debt this year, Bt13 billion next year and Bt16 billion in 2015.