Advanced Info Service (AIS) says it remains committed to acquiring fixed broadband provider Triple T Broadband (TTTBB) and investing 19% in Jasmine Broadband Internet Infrastructure Fund (JASIF), even though JASIF shareholders rejected AIS's proposed amendments to optical fibre cable (OFC) rental agreements between TTTBB and JASIF.
The commitment was communicated to the Stock Exchange of Thailand on Tuesday. The transactions are expected to be completed in the first quarter next year.
Tee Seeumpornroj, chief financial officer of AIS, said the board passed a resolution for its management to proceed with the acquisition of TTTBB and investment in JASIF as the move will enhance service quality and innovation to transform home broadband and create sustainable growth for the digital economy.
"The deal will have long-term benefits for the home broadband sector. It will enable Thai users in any urban or non-urban location to access high speed digital services and internet with fibre-optic technology," said Mr Tee.
The deal worth 32.4 billion baht in total was announced in July when AIS set a condition that JASIF unitholders must approve the cancellation of the rental assurance agreement and amendments to the main lease agreement.
JASIF owns OFCs spanning 1.6 million core kilometres, which are currently leased by TTTBB for its broadband internet service under the 3BB brand.
Last month, the proposed amendments to the OFC rental agreements were disapproved in the JASIF unitholders' meeting.
Mr Tee said AIS, which also has its own fixed broadband business under the AIS Fibre brand, is maintaining its mission to develop its broadband network to provide full coverage for all Thai people, while accelerating the rollout of the country's digital infrastructure.
The deal will lead to a large reduction in redundant fibre optic cabling.
"In the matter of reducing the lease fee, which was previously not approved by unitholders of JASIF, despite being an important factor in the considerations, AIS now sees the long-term benefits for business operations to be supported by synergy from the potential of both companies," Mr Tee said.
The two companies combining their strengths will enable more capabilities to provide broadband internet services through fibre optic cables, and provide better coverage for customers, including increasing and diverse valued exclusive privileges, he said.
As for opportunities to extend the leasing contract for JASIF infrastructure after it expires in January 2032, Mr Tee said the contract extensions require consideration of appropriate cost-effectiveness with respect to the competitive capabilities of AIS and 3BB.
"AIS will also consider other alternatives as appropriate, such as the establishment of AIS's infrastructure fund to utilise our assets to support long-term business growth," Mr Tee said.
Pisut Ngamvijitvong, senior equity research analyst of Kasikorn Securities (KS), said AIS's pursuit of the deal will increase its fixed broadband subscriber base from 2 million to 4.4 million, enhance its fibre optic network and create additional value for the firm.
AIS will consider renewal of the rental contract beyond its expiry in January 2032 only if the renewal terms are the best available options to justify operating costs at that time, he said.
As AIS is set to seek regulatory clearance from the telecom regulator, KS is fully confident that the deal will eventually go through, Mr Pisut added.