China Mobile Ltd, the world’s largest mobile-phone company by subscribers, agreed to buy an 18% stake in True Corp for 28.6 billion baht.
True, the phone company backed by billionaire Dhanin Chearavanont, also plans to raise about $1.1 billion through a rights issue, the Bangkok-based carrier and China Mobile said in separate stock exchange filings. The 5.65 billion shares offered to existing True shareholders will be priced at 6.45 baht apiece, or 13% less than the 7.45 baht when trading was halted earlier today.
Thailand’s third-largest mobile-phone company is seeking to raise funds to cut debt and fund the rollout of a faster fourth- generation network to help meet surging demand for mobile data. The offering comes after the Thai army seized power last month to end six months of political stalemate between Yingluck Shinawatra’s government and its opponents.
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