Thai telecoms conglomerate True Corp is looking to list an infrastructure fund in order to raise at least Bt70bn (US$2.2bn) to repay debt.
If successful, the initial public offering would be the region’s largest so far this year and the country’s…
Thai telecoms conglomerate True Corp is looking to list an infrastructure fund in order to raise at least Bt70bn (US$2.2bn) to repay debt.
If successful, the initial public offering would be the region’s largest so far this year and the country’s biggest-ever.
The company, which controls the country’s third largest mobile operator, said that it will spin off assets including towers and fibre optic cable networks into the fund and then lease them back.
The company is planning on buying one-third of the fund while the remaining stake will be sold to the public.
Proceeds from the listing – the timing of which has not been disclosed – will used to help pay part of its debt load, which stood at approximately Bt100bn (US$3.2bn) as of March 2013.
“The debt repayment will significantly improve capital structure of the company and will enhance the investment capacity. In addition, the company and/or its subsidiaries may use part of the proceeds in the investment in other future projects,” True said in a notice to the Thailand Stock Exchange.
The listing must be approved at a shareholders meeting, which will take place on 12 September. True Corp has reportedly hired Credit Suisse for the transaction.
Besides its mobile operations, True Corp also owns ISP and cable TV assets.
