Thai mobile giant AIS has signed letters of intent (LoI) stating its interest in acquiring shares of broadband provider CS Loxinfo (CSL) from its two major shareholders Thaicom (part of AIS’ parent group InTouch Holdings [formerly Shin Corp]) and Singtel (itself a direct shareholder in AIS). Thaicom owns 42.07% of the ISP through its subsidiary DTV Service Company, while Singtel owns a 14.14% CSL stake. AIS’s preliminary indicative offer is THB7.8 (USD0.24) per share, which is open to further negotiation and/or due diligence.
CSL, formerly known as CS Communications Company Limited, was established on 20 July 1994 as a joint venture company of CAT Telecom and Thaicom. The company lists its major business areas as the provision of data centre services, and supporting satellite broadband access for domestic and international businesses. In 2015 the ISP entered the residential broadband market via its High Speed Condo unit. The telco provides fibre-optic broadband connectivity to condominiums situated near the Skytrain and Subway lines in the Sukhumvit, Ratchadaphisek, Lat Phrao and Phahon Yothin areas of Bangkok. Download speeds of up to 100Mbps are available.
If approved, the takeover is expected to bolster the mobile operator’s position within the fixed internet segment. AIS commercially launched its residential fibre broadband service under the ‘AIS Fibre’ brand in April 2015, offering connection speeds of up to 1Gbps via fibre-to-the-home (FTTH), with VDSL2-based connections also provided in selected locations.