Thai communication conglomerate True Corp. is looking to raise Bt13.1bn (US$432m) by issuing 6.7 billion new shares.
The objective is to finance its 3G expansion but also to reduce its debt load, the company said in a statement published on its website….
Thai communication conglomerate True Corp. is looking to raise Bt13.1bn (US$432m) by issuing 6.7 billion new shares.
The objective is to finance its 3G expansion but also to reduce its debt load, the company said in a statement published on its website. True Corp. controls True Move, the country’s third largest mobile operator.
True first announced its recapitalisation plan in December 2008, saying it would sell a total of 10 billion shares at Bt1.95 (US$0.06) each. In February 2009, shareholders subscribed to about 3.2 billion shares, which allowed the company to raise Bt6.38bn (US$210m).
The company is now selling the remaining 6.7 million shares, which will still be offered at Bt1.95 each, with existing shareholders offered 0.865 new shares for each of their shares. The subscription period runs from 30 May to 3 June.
In early February, CAT and True Move inked a partnership to provide 3G mobile services, meaning that True will continue to be able to offer phone services after its 2G licence expires in 2013.
But the National Telecommunications Commission (NTC) reportedly said that a 3G partnership between CAT and True may breach the new frequency allocation law and affect competition in the 3G market.
