DTAC in talks with CP over potential merger with TRUE

Thailand’s second largest telecommunications provider DTAC, owned by Norway’s Telenor Group, are in talks with the Charoen Pokphand Group over a possible merger with its telecommunications unit TRUE, media reports said on Friday.

If the merger goes through, TRUE, currently Thailand’s second largest telco provider, would have over 54 per cent of the marketshare.

Thai Enquirer reported in July that Telenor SA was looking to exit its position in Thailand. (Read more here) The earlier report was based on a report published by London-based business intelligence service TMT Finance which had reported that TRUE was one of the potential suitors for DTAC.

According to Reuters, DTAC is valued at $3 billion while True has a value of $4.5 billion.

Both companies released statements on Friday not denying the rumours but saying talks were ongoing and that shareholders would be taken care of.

Shares of both companies were actively traded on Friday with DTAC ending the day up 0.61 per cent at 41.25 baht. TRUE shares dropped 1.37 per cent to end at 4.32 baht. TRUE was the 2nd most active traded shares on Stock Exchange of Thailand while DTAC was 7th most actively traded shares for the day.

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