Thailand’s CP Group and Norway’s Telenor confirmed on November 22, 2021, that they are exploring the merger of their Bangkok-listed telecom units, True Corp and Total Access Communication (DTAC).
Telenor said that if the deal is completed successfully, it will feature a conditional voluntary tender offer (VTO) for all the outstanding shares of True and DTAC, which will be followed by a merger of the two firms.
This merger deal of Telenor’s DTAC and CP Group’s True Corp is valued at around THB282.8bn ($8.61bn), according to Reuters’ reports.
Telenor stated that the VTO price for DTAC shares would be valued at THB47.76, which represents a 25% premium over DTAC’s 1-month average share price. On the other hand, the VTO price for True Corp shares will be THB5.09, which represents a 25% premium to its 1-month average share price.
Investors were seen cheering the news as DTAC shares spiked by 9.7% to THB45.25, while True Corp stock gained more than 11% to trade at THB4.82 on November 22 in Bangkok.
On Monday, Telenor said that the new firm would have nearly 55 million clients and a Pro-forma revenue of nearly $6.9 billion in 2021. Could this be a DTAC-True merger? Telenor said in a statement:
“Telenor believes there will be significant opportunities in Asia coming from digitalization and technical advancements in the coming years, and the proposed transaction will advance Telenor’s value-driven strategy to strengthen our presence in Asia.”
True and DTAC will continue to run businesses independently until this deal is completed, which is expected to happen by the end of the first quarter of next year.