DTAC plans to delist from Singapore stock market, increase borrowing

9 Feb 2011

Dow Jones Newswires writes that Digital Total Access Communication (DTAC), Thailand’s second-largest mobile operator by subscribers, has disclosed plans to delist from the Singapore Stock Exchange within three years. As a first step toward removing its shares from the Singapore bourse, DTAC’s board has approved a plan to change its listing status in Singapore to secondary from primary. Chief Financial Officer Vanna Pornsinsiriruk explained the reasoning behind the move: ‘We don’t see much benefit in maintaining our listing status in Singapore, especially as our securities there are rather illiquid.’ She added that only around 1% of the company’s outstanding shares are currently traded on the Singapore exchange. DTAC listed on the Singapore bourse in 1995, before floating its shares in Thailand in 2007.

Vanna also announced that the cellco intends to increase its debt level, in a financial restructuring plan ‘which should be completed by the first half [of this year].’ The company is looking at various alternatives including loans, project financing, bond issuance, other financial instruments, or a higher dividend payout. The CFO said the company currently has THB12.6 billion (USD410 million) of cash in hand, whilst it has around THB5 billion of outstanding bonds due in August.

Thailand, Digital Total Access Communication (DTAC)