Telenor enhances role in Thai operator through investment in Thai Telco Holdings with Bencharongkul family

Press release
3 minute read
Telenor's Singapore subsidiary takes a 49 per cent stake in Thai Telco Holdings in a strategic realignment with Bencharongkul family. Telenor Asia thereby achieves enhanced operational role in mobile operator DTAC through its mother company UCOM.

Thai Telco Holdings Limited, (TTH) a limited liability Thai company, has executed a sale and purchase agreement (SPA) with the Bencharongkul family to acquire their 39.9 per cent stake in United Telecommunications Industry PCL (UCOM) for a total consideration of 9.2 billion Baht. Under the terms of the SPA, TTH has acquired 173.43 million UCOM shares at a price of 53.0 Baht per share.

TTH is a private investment company. Telenor Asia Pte Ltd (Telenor Asia), the wholly owned Singapore unit of Telenor ASA of Norway, holds a 49 per cent stake in TTH.

Since 2000, Telenor Asia, in partnership with the Bencharongkul family, has been a significant direct investor in both UCOM and its 41.6 per cent owned affiliate, Total Access Communications PCL (TAC), which is commonly known by its popular brand, 'DTAC'. The completion of this transaction by TTH represents an important step forward in the long standing partnership between the Bencharongkul family and Telenor Asia. As a result of the executed agreements Telenor Group will consolidate the accounts of TAC and UCOM.

Commenting on the transaction, Jon Fredrik Baksaas, CEO and President of Telenor ASA, commented , "We are delighted to participate in this transaction as an investor in TTH. As a consequence, we will be able to fulfil our longstanding goal to assume a greater responsibility in the operations and management of TAC. We look forward to working together with our longstanding partner, the Bencharongkul Family, to take the Company to the next level of operational performance, for the mutual benefit of the Company's stakeholders, customers and the Thai market."

Upon completion of this transaction, in compliance with relevant stock market regulations in Thailand and Singapore, TTH will launch a Mandatory Tender Offer for all outstanding shares of UCOM, and along with Telenor Asia, a Chain Principle Offer for all of the shares of TAC that they do not collectively own or control.