FRIDAY, March 29, 2024
nationthailand

True-DTAC deal not a takeover, Suphachai clarifies

True-DTAC deal not a takeover, Suphachai clarifies

The merger of telecom players True and DTAC is a mutual collaboration in the best interests of Thailand's telecommunication sector and is not a takeover for one company to have control over the other, a top executive said on Friday.

Suphachai Chearavanont, CEO and executive chairman of conglomerate Charoen Pokphand Group (CP), True's parent company, told a press conference that the merger process between True and DTAC is still pending approval from the National Broadcasting and Telecommunications Commission (NBTC).

True-DTAC deal not a takeover, Suphachai clarifies

Since this type of agreement is an eco-partnership in which both True and DTAC would hold an equal 30 per cent stake, the laws already state that the NBTC has no authority to suspend the deal and can only create a list of conditions to ensure the deal benefits the public the most, Supachai said.


He added that if the deal is considered a takeover, the NBTC can legally suspend it. True and DTAC, on the other hand, have agreed to share the best of their infrastructure, resources, and talents to transform into a technology telecommunications company. Hence, it is a merger and acquisition rather than a takeover, he said.

Supachai added that the new board of the NBTC has just been appointed, so they need some more time to consider the True-DTAC deal. However, he pleaded with the board to move quicker.
Besides, he expressed his readiness to cooperate with the NBTC and be a part of their process to create the conditions for this merger and acquisition.


Supachai also updated on the working process between True and DTAC. He said all the documentation process had already been finished in January this year. The path of cooperation between the two companies is very progressive.


The regulations and regulators are the only hurdle to concluding the deal right now, he said.


"I confirm that our merger and acquisition is required to maintain our best competitiveness in this digital landscape. Our cooperation will support the growth of Thailand's telecommunication industry, support equality, improve sustainability and transform the country to be the digital hub in this region,” said Supachai.
 

True-DTAC deal not a takeover, Suphachai clarifies


Meanwhile, Sigve Brekke, president and CEO of Telenor Group, the parent company of DTAC, added that Thailand has great potential to be the champion of the digital industry in Southeast Asia.


There are strong supportive measures from the government, an active private sector and enthusiastic online adoption of mass local users, Brekke said.


Unfortunately, when it comes to innovative technology and new venture capital for startups, Thailand still lags regional countries like Vietnam and Indonesia.


Brekke pointed out that startups will be a key factor in driving Thailand's digital industry and also strengthening Thailand as a regional innovation hub. Therefore, the cooperation with True will provide more funds and resources to groom these startups.


"We will set-up a 7.3-billion-baht VC [venture capital] fund and establish a telco technology-focused innovation centre that will identify strong startup opportunities and support entrepreneurs throughout the journey of creating successful regional businesses," said Brekke.


He said he was confident that together with True, Thailand can improve its potential to become a technology powerhouse in the future.

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