Telenor, DTAC’s biggest shareholder, has said that the company’s planned merger with True Corporation, another Thai telecom company, will not go through this year but may potentially occur in the first quarter of 2023.
Since its announcement in November of last year, plans for a new industry leader in Thailand have been on hold due to competition concerns.
The Norwegian telecommunications company Telenor claims that the US$8.6 billion acquisition could not proceed because a voluntary tender bid was not completed within the allotted time frame of one year.
The Norwegian company stated that it had not changed its mind about the merger and that it still saw value in bringing together DTAC and True under the CP Group umbrella. It further stated, “Telenor and CP Group continue to aim an equal ownership stake of roughly 30% of the amalgamated firm.”
In a statement released last month, Telenor indicated that it will inquire with Thailand’s telecoms regulator regarding the criteria attached to the contract, such as a pricing cap, price controls, cost structure verifications, and other measures.
Telenor CEO Sigve Brekke told Reuters on October 26 that his business was “engaged in a discussion with the regulator to better understand the requirements and what they imply” in response to a question about the deal’s potential danger.
