Shares of True Corporation Plc, the new entity created through the merger of the country’s second- and third-biggest telecom operators, rose slightly on their trading debut on Friday on the Stock Exchange of Thailand.
The shares closed at 8.60 baht, after opening at 8.35 baht, in turnover valued at 6.4 billion baht. They moved within a range of 8.05 and 8.80 baht on the day.
The return to the market marks the culmination of a consolidation process that drew protests from consumer groups and the company’s main telecom rival.
While True has a single corporate identity, customers will be served under the existing True Move and DTAC brands for at least the next three years. This was one of the conditions set by the National Broadcasting and Telecommunications Commission (NBTC) for approving the controversial deal.
The merger of True and Total Access Communication Plc (DTAC) creates a new company with 55 million mobile subscribers, ending the long reign of market leader Advanced Info Service (AIS), which ended last year with a total of 46 million mobile users.
True shares have an implied fair value of 10.32 baht each, Kasikorn Securities said in a report on Thursday. The combined market value of the two entities before trading was suspended to complete the merger was 294 billion baht.
The merged entity has an enterprise value of about $20.7 billion (720 billion baht), according to Jorgen Arentz Rostrup, True’s vice-chairman and a nominee of Telenor, which owns 30% of the company.
The Charoen Pokphand Group also holds about 30% in the new company and China Mobile about 10%, with the rest being held by minority shareholders.
The new telecom-tech company will combine the best of True and Dtac and the global expertise of its shareholders, True Corp said in a statement. IT would benefit from synergies within its network, digital infrastructure, IT systems, purchasing, sales and marketing, retail channels and operational costs, the statement said.
“Thai consumers will benefit from this amalgamation. The synergy will lead to fair and balanced competition, which is ultimately in customers’ interest,” True chief executive officer Manat Manavutiveth said in the statement.
The new company, together with partners, intends to raise $200 million in venture capital to invest in digital startups to help accelerate and stimulate growth in Thailand’s digital ecosystem, True said.
