Digital Total Access Communication (DTAC) and True Corporation have agreed to merge their operations. The merger plan was approved by their respective executive boards on 19 November, with the duo inking a memorandum of understanding (MoU) for an equal partnership to form a new merged firm today (22 November). DTAC and True agreed to a swap ratio of one existing share in DTAC to 24.5 shares in the new firm, and one share in True to 2.4 shares; further, the duo indicated the new company will apply to be listed on the SET. Citrine Global Company, a joint venture of Telenor Asia (the parent firm of DTAC), and Thai agribusiness conglomerate Charoen Pokphand (CP) Holding, the parent firm of True, would make a conditional voluntary tender offer for all shares of the two firms – THB5.09 (USD0.15) per one share in True and THB47.76 per one share in DTAC.
TeleGeography notes the Thai mobile market comprises three privately owned mobile operators – Advanced Info Service (AIS), DTAC and True Corp – and state-backed operator National Telecom (NT) – formed by the January 2021 merger of CAT Telecom and TOT. AIS, whose backers include Singtel Group, dominates the market with 44.5% of all subscriptions at September 2021. Its rivals True Corp – controlled by CP Group, but co-owned by China Mobile – and Telenor-backed DTAC remain some way behind AIS, with 32.6% and 19.6% respectively; a potential merger would establish a new market leader controlling over 50% of all subscriptions in the country.