Thai mobile operators True Move and Advanced Info Service (AIS) are both considering buying Hutchison CAT Wireless Multimedia (HCWM), according to media reports.
HCWM is a CDMA joint venture between Hutchinson Telecommunications International (HTI), a…
Thai mobile operators True Move and Advanced Info Service (AIS) are both considering buying Hutchison CAT Wireless Multimedia (HCWM), according to media reports.
HCWM is a CDMA joint venture between Hutchinson Telecommunications International (HTI), a Hong Kong-based telecom group, and Thai state-owned telco CAT Telecom.
A deal between True and HCWM could reach between US$120m and US$150m and would reportedly be concluded in November.
These rumours follow recent reports suggesting that HTI would not sell HCWM to CAT for less than Bt6.57bn (US$220m).
Back in September, Thailand’s Information and Communications Technology Ministry (ICT) ordered CAT to pay less for Hutchinson Telecommunications International (HTI)’s CDMA assets – Bt4bn (US$135m) instead of Bt7.2bn (US$240m).
ICT Minister Chuti Krairiksh was quoted saying that it was not necessary for CAT to pay such a high price for the network and that it should instead save money for other projects as part of the government’s plan to promote CAT and TOT as the national network providers.
But Hutch would rather mothball the company than sell it for the price asked, an unnamed source told local reporters.
Last April, the government approved CAT Telecom’s plan to take complete ownership HCWM, which covers 25 provinces, including the Bangkok area.
At the time of the approval, CAT president Jirayuth Roongsrithong was quoted saying that the deal would enable CAT to generate Bt4bn in revenues in the first year of operations and add 1.5 million subscribers to its name.
