CAT fight

3 Jun 2008

TOT’s THB2.4 billion (USD75 million) offer to acquire a 42% stake in Thai Mobile from CAT Telecom has been turned down. CAT said it would have accepted TOT’s offer only if it was paid in cash; TOT had proposed payments to be made in twelve annual instalments and CAT claimed that inflation would have lowered the real purchase price to around THB1.6 billion. A report from the Bangkok Post says that CAT is now proposing a deal under which it would acquire TOT’s 58% interest for THB3.3 billion, to be paid over five years at THB660 million a year. The two state-owned enterprises are vying for control of Thai Mobile which has just 60,000 subscribers but owns rights to valuable 3G wireless spectrum.

Thailand, CAT Telecom, Thai Mobile, TOT