China Mobile International Holdings Limited is assessing a possible sale of a small portion of its shareholding in True Corporation as part of routine investment portfolio management, the Thai telecommunications company reported.
The potential sale would depend on market and other relevant factors and is unrelated to True Corp, the company said in a filing to the Stock Exchange of Thailand (SET) on Tuesday.
True said China Mobile has no intention of divesting its entire investment in the company. China Mobile holds a 7.81% stake in True.
The filing was made in response to media reports this week about China Mobile’s potential disposal of its 7.81% shareholding.
"China Mobile has confirmed that it intends to remain a long-term shareholder, regards the company as an important strategic partner and continues to have confidence in the company’s long-term development and business outlook," the filing said.
True does not expect any small stake divestment by China Mobile, if it materialises, to have a material impact on the company’s strategic direction, management or operations, the filing signed by True chief financial officer Nakul Sehgal said.
On Monday, Bloomberg reported that China Mobile is considering selling its minority stake in True, citing people familiar with the matter.
The report sent True’s share price down 4.9% on Monday before it later recovered. At 11.55am on Tuesday, the price was 13.80 baht, down 0.72%.
