Thai conglomerate True Corp may have to reconsider its planned Bt70bn (US$2.2bn) telecoms infrastructure fund spinoff due to a reported dispute over the ownership of some towers.
Bangkok-based True may have to cut the size down to Bt60bn (US$1.9bn)…
Thai conglomerate True Corp may have to reconsider its planned Bt70bn (US$2.2bn) telecoms infrastructure fund spinoff due to a reported dispute over the ownership of some towers.
Bangkok-based True may have to cut the size down to Bt60bn (US$1.9bn) because 7,000 towers that were set to be rolled into the fund are under arbitration, people with knowledge of the matter told Reuters.
True’s CFO told the newswire that despite the tower setback, the company is still committed to offering a Bt70bn fund but added that the final number has to be finalised.
Its mobile unit, True Move, operates the towers through a contract with state-owned CAT Telecom. That contract ends on 15 September and True is trying to find a settlement over the ownership of these towers, the report said. Otherwise, the company will be required to return the infrastructure to CAT.
The number of towers to be part of the spinoff would fall from 13,000 to 6,000 but True would reportedly make up some of the shortfall by adding fibre networks to the fund. If the amount was to change, the planned fund would need to be re-approved by the board before it could be put to shareholders.
True, which controls the country’s third largest mobile operator, is planning on buying one-third of the fund while the remaining stake will be sold to the public. It will then lease its infrastructure back from the company.
Proceeds from the listing will be used to help pay part of its debt load, which stood at approximately Bt100bn (US$3.2bn) as of March 2013.
Credit Suisse is said to be advising True on the transaction.
