Advanced Wireless Network (AWN) Co, a subsidiary of mobile leader Advanced Info Service, plans to de-list CS LoxInfo (CSL) from the Stock Exchange of Thailand after acquiring the company through a tender offer.
To date, AWN has acquired 476.196 million shares or 80.1% of CSL's issued and paid-up ordinary shares of the company.
On Oct 6, 2017, CSL received a conditional voluntary tender offer letter from AWN to acquire up to 100% of the issued and paid-up ordinary shares in the company (amounting to 594.51 million shares) at a price of 7.80 baht per share.
AWN intends to de-list CSL from the SET within 12 months after the expiration of the tender offer period, according to the company's statement.
AWN's tender offer must ensure the move complies with relevant regulation. The de-listing will be subject to the approval of CSL shareholders and the SET. The business will remain in operation and retain its status as a public company limited.
DTV Services Plc, a subsidiary of Thaicom Plc, which is the satellite arm of parent firm Shin Corp, holds 42.07% of the total issued and paid-up ordinary shares of CSL, thanks to an agreement entered into on Oct 6, 2017. Singapore Telecommunications Limited (SingTel) holds 14.14% of the total issued and paid-up ordinary shares after it entered into an agreement with CSL on Oct 24, 2017.
DTV and SingTel agreed to sell their entire stake of 250,099,990 and 84,057,030 ordinary shares, respectively, to AWN through a tender offer.
CSL reported consolidated revenue for 2017 of 2.82 billion baht, a decrease of 95 million baht, or 3%. Its net profit from operation was 305 million baht, or 0.51 baht per share, on par with the previous year.
The company discontinued its Yellow Pages print media and started focusing only on online media since April 2017. Given the intense competitive pressures in the telecom industry, the growth of its ICT business did not compensate for the decrease of voice and info services and mobile content.
In the fourth quarter of 2017, the company revised its internet network rental fee agreement with suppliers, adjusting for a 20-million-baht internet network cost.