Mitihoon – True Corporation Public Company Limited received the prestigious “Deal of the Year” award at the Stock Exchange of Thailand (SET) Awards 2024, an accolade that recognizes the outstanding success and positive impact of the amalgamation between the former True Corporation PCL and Total Access Communication PCL (dtac), marking a historic milestone in the information and communication technology industry. The award marks a historic milestone for Thailand’s economic development, particularly in the information and communication technology sectors.
The amalgamation between the former True Corporation and Total Access Communication, finalized on March 1st, 2023, represents the largest telecom merger in Southeast Asia by combined enterprise value and the largest merger of two listed Thai companies in history based on combined market capitalization. The newly formed company has enhanced connectivity and innovative digital services nationwide, while strengthening Thailand’s competitive position in the global technology landscape.
This landmark deal was driven by the shared vision of CP Group and Telenor to create a leading technology company in Thailand, capable of meeting the challenges of a rapidly evolving digital landscape. CP Group, the major shareholder of the former True Corporation, and Telenor, the major shareholder of Total Access Communication, are equal partners in the newly formed company with a 30.3 percent ownership stake each.
Manat Manavutiveth, Chief Executive Officer of True Corporation Plc., said, “The ‘Deal of the Year’ award from the Stock Exchange of Thailand recognizes True Corporation’s ambition and transformation into a technology powerhouse, enhancing our ability to invest in next-generation networks and support Thailand’s digital development. The deal was designed to foster innovation in areas such as artificial intelligence, cloud technology, smart devices, and smart cities, aligning with Thailand 4.0’s goals of promoting science, technology, and innovation to develop the country’s digital economy.”
A Historic Merger with Unprecedented Scale
The “Deal of the Year” award is one of the highest honors bestowed by the SET, celebrating exceptional transactions that have made a profound impact on the capital markets. This award acknowledges deals that demonstrate innovation, strategic vision, and substantial value creation.
“Winning the SET’s ‘Deal of the Year’ award underscores the strong commitment of Telenor and CP Group to create a strong telecom-tech leader that can drive Thailand’s digital transformation. The deal faced significant challenges, including complex negotiations during the peak of the COVID-19 pandemic and assigning “clean teams” under special protocols from both companies. This ensured we maintained confidentiality of price-sensitive information and that both companies remained competitive during the transaction. The successful navigation of these challenges highlights the expertise and resilience of True Corporation’s leadership and finance teams,” said Nakul Sehgal, Chief Financial Officer (Co) of True Corporation Plc.
Throughout the amalgamation process, True Corporation and Total Access Communication prioritized transparency and equitable treatment of all stakeholders. Key information was disclosed to shareholders, investors, regulatory authorities, creditors, and partners, ensuring a smooth and informed transition. This commitment to transparency has reinforced trust and confidence in the newly formed True Corporation’s strategic direction, as the “Deal of the Year’ award from the SET confirms.
Accelerating Thailand’s Digital Future
The amalgamation is expected to realize THB 250 billion in synergies across four key areas: Technology & IT, Unified Organization & Operations, Procurement at Scale, and Revenue Synergies. These synergies will drive profitable operations, streamline processes, and enhance the company’s competitive edge.
Sharad Mehrotra, Deputy Chief Executive Officer of True Corporation Plc., said: “The amalgamation has far-reaching benefits for consumers and the nation. The merger has enabled True Corporation to improve 5G coverage, network quality, reliability, and speed, providing our customers with superior connectivity. The combined strengths of True Corporation and Total Access Communication have resulted in more value-driven products, services, and privileges, along with world-class customer care. This will uplift Thailand’s digital economy and create new business and employment opportunities that will drive the country towards becoming a regional technology hub.”
The stock price of True Corporation (TICKER: TRUE), upon relisting on 3rd March 2023, has increased by over 130% year-to-date, demonstrating that the merger has attracted significant investment and confidence from both local and foreign investors. True Corporation’s upgraded credit rating and broadened bond investor base contribute to the financial market’s stability and growth. Additionally, the merger has created job opportunities and supports local vendors and suppliers, contributing to overall economic development.
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