China Mobile to take stake in Thailand's True

Jun 09, 2014

China Mobile Ltd. has agreed to buy an 18 percent stake in Thai telecommunications and cable TV company True Corp. for $880 million, the highest profile corporate deal announced in Thailand since the military sized power in a May 22 coup.

True said Monday that the investment by the state-owned Chinese company is part of a 65 billion baht ($2 billion) share issue that will mainly be used to reduce the Thai company's debt.

True, which has mobile telephone, cable TV and Internet businesses, said it will sell about 4.4 billion new shares to China Mobile for $880 million. It will offer existing shareholders more than 5.6 billion new shares at the same price paid by China Mobile of 6.45 baht (20 cents) a share.

China Mobile is the world's largest mobile phone company by subscribers but has a limited presence outside of mainland China. It had 785 million subscribers in China as of April 30.

Thailand's second coup in eight years has ushered in relative stability after six months of protests in Bangkok against the elected government and political violence that killed 28 people.

The economy shrank in the first quarter as the political uncertainty took a toll on spending by consumers and businesses.

True Corp. is majority owned by Thai billionaire Dhanin Chearavanont's Charoen Pokphand Group.

Dhanin last year bought a 15.6 percent stake in China's Ping An Insurance for $7.4 billion.

True said the share sale should be completed by the end of August. Its shares rose 2.8 percent Monday to 7.45 baht.

Explore further: China Mobile profit hit by competition, 4G costs (Update)

not rated yet
add to favorites email to friend print save as pdf

Related Stories

China Telecom profit falls 9.5 percent

Mar 20, 2013

State-owned China Telecom Corp. said Wednesday that profit fell 9.5 percent last year because it spent more to market the iPhone as it battled rivals for higher-paying customers.

Glance: Alibaba's tentacles into Chinese retail

May 07, 2014

Alibaba Group, the Chinese e-commerce powerhouse that filed to offer its shares to U.S. investors Tuesday, has stretched its tentacles deep into China's other major Internet companies. ...

China Telecom profit up 20 percent on 3G users

Oct 28, 2013

State-owned China Telecom, the country's third-biggest mobile phone operator by subscribers, said Monday that quarterly profit grew by a fifth as it continued to benefit from spending by new users of data-hungry iPhones.

China Unicom 1H profit leaps 55 percent

Aug 08, 2013

China Unicom Ltd., one of the country's three big state-owned phone companies, said first half profit jumped by more than half as it signed up more third-generation users and customers increased their usage of mobile data ...

Recommended for you

Full appeals court upholds labels on meat packages

4 hours ago

(AP)—A federal appeals court has upheld new government rules that require labels on packaged steaks, ribs and other cuts of meat to say where the animals were born, raised and slaughtered.

Chinese smartphone makers win as market swells

4 hours ago

Chinese smartphone makers racked up big gains as the global market for Internet-linked handsets grew to record levels in the second quarter, International Data Corp said Tuesday.

BlackBerry buys German anti-eavesdropping firm

4 hours ago

Canadian smartphone maker BlackBerry announced Tuesday the purchase of German voice and data encryption and anti-eavesdropping firm Secusmart, whose customers include NATO and German Chancellor Angela Merkel ...

India's Flipkart raises $1 bn to tackle Amazon

6 hours ago

India's top e-commerce company Flipkart said Tuesday it had raised $1 billion (60 billion rupees) in funds as it battles US giant Amazon for supremacy in the hyper-competitive local market.

User comments : 0