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Thailand’s largest mobile carrier Advanced Info Service Plc (ADVANC) said on Monday it is acquiring two broadband entities from Jasmine International Plc (JAS) for 32.4 billion baht.
In the morning session, ADVANC rose by 3.3 per cent from its prior closing to 202 baht, while JAS fell 3.9 per cent to 3.46 baht.
The telecom giant will pay 19.5 billion baht for Triple T Broadband through its subsidiary Advanced Wireless Network. In another deal, 12.9 billion baht will be used to buy a 19.9 per cent stake in the Jasmine Broadband Internet Infrastructure Fund (JASIF).
JASIF saw a 7.37 per cent drop to 8.80 baht as of the morning session.
The undertaking agreement was signed on July 3, and the acquisition is scheduled to be completed in the first quarter of 2023, after getting clearance from the National Broadcasting and Telecommunications Commission (NBTC).
AIS’s chief financial officer, Tee Seeumpornroj said the move “will enhance consumer access to broader and better quality of service,” with the “inclusion in new areas targeting the upcountry and non-city areas.”
He added the transaction will be funded by debt given sufficient debt headroom.
Analysts believe AIS is seeking a way to expand its broadband business as True Corporation Plc (TRUE) and Total Access Communication (DTAC) prepare for a merger.
After gaining 2.4 million broadband subscribers from Triple T, AIS would become Thailand’s second largest broadband provider, with a combined subscriber base of 4.3 million, according to an analysis by Bualuang Securities.
Meanwhile, the current market leader of broadband internet is True Corporation, which has 4.7 million subscribers.