True and DTAC Set to Merge Before End of Q1, 2022

Thailand’s National Broadcasting and Telecommunication Commission (NBTC) confirmed that the merger between DTAC and True Corporation is supposed to move forward, with the company’ accepting confirmation of their intent.  

The merger is expected to close in Q1 2022, according to local outlet, especially after receiving approval from the operators’ respective boards of executives on 19th November 2021. In the newly merged entity, the companies will take equal stakes.  

TeleGeography reports that the firms agreed to an exchange ratio that would see one share in DTAC equate to 24.5 shares in the merged entity, while one share in True would equate to 2.4 shares. The companies expressed an intention to list the merged unit on the SET.  

It is worth mentioning that DTAC and True’s respective parent companies, Telenor Asia and Charoen Pokphand (CP) Holding, designed a joint venture known as Citrine Global Company. This group will make a conditional voluntary tender offer for the entire shareholding of the two companies, with True shares priced at THB5.09 (USD0.15) and DTAC’s at THB47.76.  

In addition, and according to the Global Database, CEIC, Thailand Penetration Rate: Mobile: Total data was reported at 146.740 percent in 2017. This records an increase from the previous number of 136.230 percent for 2016.  

Also, the firms suggested that the merged unit would ask to be listed on the SET and have agreed to a different share swap ratio for each operator: one existing share in DTAC will equate to 24.5 shares in the new unit, compared to one share in True for 2.4 shares.  

According to Statista, the number of mobile subscribers in Thailand in 2020 was almost 120 million, indicating a decrease of about ten million subscribers from 2019.   

“From the obtained figures, the number of mobile subscribers in Thailand has constantly been growing up until 2020,” it added.  

One more thing worth noting is that the Thai mobile market has already seen some association this year, with state-backed operators CAT Telecom and TOT merging to form National Telecom (NT) in January 2021. Singtel-backed AIS (Advanced Info Service) leads the market with a share of around 44.5 percent, while True Corp and DTAC, respectively, have about 32.6 percent and 19.6 percent.