NBTC settles regulatory issues for True Corp's infrastructure fund

True was the first company in the telecom sector to announce a plan to set up such a fund, followed yesterday by Jasmine International.
Jasmine filed to the Stock Exchange of Thailand that its board approved establishment of an infrastructure fund for broadband Internet business, worth Bt50 billion to Bt70 billion. It will allow the company and/or its subsidiaries to sell or lease its own nationwide broadband networks, comprising optical fibre cable of approximately 610,000 core kilometres and approximately 16,000 access nodes to the network to customers.
Settapong said his committee had convened with the Securities and Exchange Commission (SEC) and True’s fund manager SCB Asset Management (SCBAM) on the regulatory issues.
He added that the NBTC would regulate those planning to use True’s telecom network assets, which the company would sell to the fund to raise money. The SEC will oversee the fund management and the fund listing. Those planning to utilise such network assets in the fund are required to hold NBTC telecom licences. SCBAM does not have to apply for an NBTC licence to manage the fund.
Last week True chief financial officer Noppadol Dej-Udom said the company had decided to exclude TrueMove’s telecom-tower assets, which are the subject of an ownership dispute with CAT Telecom, from its planned infrastructure fund to ensure that it can be launched this year. He affirmed that this would not affect the plan to establish the fund.
True shares yesterday closed at Bt7.40, down 3.90 per cent.
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.
Last Friday True also informed the SET that it had postponed an extraordinary shareholders’ meeting scheduled for September 12 to vote on setting up the in-frastructure 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.

Internet expansion
Meanwhile, the proceeds from Jasmine’s infrastructure fund will be used for expansion of its broadband Internet business. The company and/or its subsidiaries will invest one-third of the total issued investment units of the infrastructure fund, it advised the SET. The investment amount is approximately Bt16.66 billion to Bt23.33 billion.
Jasmine is considering |hiring local and foreign financial advisers, an independent financial adviser, a legal adviser, underwriters and a fund man-ager.
The unit offerings of the infrastructure fund are to be scheduled before the end of the year. Its board will sooncall an extraordinary general meeting of shareholders for approval.