Charoen Pokphand (CP) Group and major telecom company Telenor today, November 22nd, announced the business merger of True Corporation (True) and Total Access Communication (DTAC) as an equal partnership to build the new company to become a leading telecommunications service provider in Thailand.
The ‘Equal Partnership’ would result in both companies’ equity shareholding in the new company, which aims to develop and transform Thailand’s telecommunications service to a global standard and broad-based prosperity.
Suphachai Chearavanont, executive chairman of CP and chairman of True Corp., said the restructuring was in line with Thailand’s 4.0 strategy to become a technological hub of the region.
“Today is another step forward in this direction. We hope it would empower all-new generations and create technology employment to fulfill and unleash their potential to become digital entrepreneurs with an advanced digital telecommunication infrastructure,” The Chairman stated.
Telenor Group President Sigve Brekke further stated that the company had experience in leading the digital aspects in many Asian countries and would continue to move forward for more advanced services and high-quality connectivity.
According to his statement, the new company would be set up with a fund worth around 100-200 million USD and would plan to support local entrepreneurs and startups in digital platforms.
Telenor Group Executive Vice President Jørgen A. Rostrup also revealed that the agreement would enhance the company’s strategy of strengthening its presence in Asia as well as create value and support long-term market development.
“We have a long-standing commitment to both Thailand and other Asian countries. This partnership will strengthen our commitment and mission. Our access to both new technology and the best quality human resources would be crucial additional factors for the new company.”
The current telecom operations of True and DTAC would continue to run their businesses independently until the transaction was completed. Both companies strongly believed that the new company under equal cooperation would be significantly beneficial to local consumers and Thai people in terms of endorsing Thai business and promoting Thailand as the advanced technology hub of the region.