OSLO, Norway-Telenor AS announced it entered an agreement to acquire a 30-percent stake in Thai mobile carrier Total Access Communication Public Co. Ltd. and up to a 24.9-percent stake in TAC’s parent company, United Communication Industry Public Co. Ltd., for about $720 million.
Telenor said it will eventually acquire TAC primary and secondary shares for $530 million at $3.75 per share. The Norwegian company also will acquire UCOM secondary shares for $289 million at $1.75 per share.
The Thai companies will use the proceeds from the transactions to reduce existing debt obligations and fund capital expenditures. The agreement is subject to certain conditions, including approvals from authorities in Thailand and Singapore.
“The investment in TAC and UCOM and our position in DiGi.Com, a leading Malaysian mobile operator, gives us a solid presence in Asia, which we believe is a key growth market for our company,” said Arve Johansen, CEO of Telenor Mobile Communications.
With 1.1 million customers, TAC is Thailand’s second-largest wireless carrier, behind Advanced Info Service, which has about 1.28 million subscribers. TAC operates nationwide Global System for Mobile communications and Advanced Mobile Phone Service 800 networks.
UCOM’s current 65-percent holding in TAC will decrease to 40 percent following completion of the transactions. In addition, after the transactions, the Bencharongkul family will hold 22.4 percent of UCOM, and Somers U.K. will have a 22.6-percent stake.
Telenor also holds stakes in mobile carrier GrameenPhone in Bangladesh, along with Western and Eastern European wireless operators.
