It is major news regarding the quiet farewell of a key player. The name Telenor has resurfaced in headlines again, now as a company gradually withdrawing from Thailand's telecommunications sector.
After announcing the signing of an agreement with Arise Digital Technology Co., Ltd., a company owned by Supachai Chearavanont, to sell a 24.95% stake in TRUE, the news caused significant turbulence in the stock price today.
At 15:47, TRUE's share price stood at 10.60 baht, down 1.80 baht or 14.52% from the previous day, despite the company emphasizing that this would not affect its business operations.
True Corporation Public Company Limited, or TRUE shares, notified the Stock Exchange of Thailand regarding a major shareholder transaction, stating that it received notice from Telenor Thailand Investments Pte. Ltd. (Telenor), a shareholder, that
Telenor has signed an agreement with Arise Digital Technology Co., Ltd. (“Arise”), a company owned by Supachai Chearavanont, to sell a 24.95% stake in the company.
Furthermore, Telenor and Arise agreed on put/call options for the remaining 5.35% stake held by Telenor, exercisable after two years from the initial sale closing date, with the transaction subject to customary conditions.
The company does not expect Telenor's share sale to have any significant impact on the company or its business operations.
Benedicte Schilbred Fasmer, CEO of Telenor Group, expressed satisfaction with the agreement and thanked TRUE's employees and customers. She expressed confidence that the TRUE team will continue to innovate and serve around 60 million customers. She also thanked Supachai Chearavanont for the constructive discussions leading to a mutually beneficial agreement.
This sale of TRUE shares is one of two Asian divestments, following the sale of Telenor Pakistan last December, aligning with the strategy to simplify the organizational structure and enhance efficiency.
The focus is on four main strategic pillars through 2030: growth through customer experience, technology-driven transformation, cost control, and creating shareholder value, as well as repositioning Telenor as a provider of secure connectivity in the region.
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