The boards of the telecom operators True Corporation and Total Access Communication (DTAC) have agreed to call their merged company True Corporation.
A joint shareholders’ meeting will be held on Feb 23 to approve the new corporate structure and other details related to the amalgamation, the companies said in statements to the Stock Exchange of Thailand on Thursday.
The merger, to be completed within the first quarter of this year, will result in the creation of a telecom giant with a total of 55 million mobile subscribers, compared with 45 million for the current market leader Advanced Info Service Plc (AIS).
However, the companies will continue to serve their customers under the existing True Move and DTAC brands for at least the next three years. This was one of the conditions set by the National Broadcasting and Telecommunications Commission (NBTC) for approving the deal.
A consumer group challenged the NBTC decision in the Central Administrative Court in December but it rejected a petition for an injunction to halt the deal.
True and DTAC have stressed that the merger is about more than just the mobile market. They note that they also intend to build on True’s existing strengths in broadband internet, pay TV and digital services and to invest in new technologies that will benefit consumers.
The joint shareholders’ meeting on Feb 23 will also vote on board members for the new company. The directors to be nominated will include Suphachai Chearavanont, Joergen Christian Arentz Rostrup, Kittipong Kittayarak, Kamonwan Wipulakorn, Kalin Sarasin, Pratana Mongkolkul, Atirut Totaweesansuk and Teerapon Tanomsakyut.
The companies have also nominated Manat Manavutiveth, the current co-president of True, as the chief executive officer of the new company, and Sharad Mehrotra, the current chief executive of DTAC, as his deputy.
True and DTAC will each hold a 30% stake in the new company.
TRUE shares closed on Thursday on the SET at 4.84 baht, down 2 satang, in trade worth 267 million baht. DTAC shares rose 25 satang to 46.25 baht, in turnover worth 1.1 billion baht.