Telenor announced Wednesday, March 1, that the merger between its subsidiary, Dtac, and its competitor True is in the works.
This is the second mobile merger Telenor has landed in Asia in just three months. At the end of October last year, Telenor’s mobile company in Malaysia merged with a competitor in the country.
The merger has been approved by authorities, more than a year after the parties agreed on the deal. Telenor estimates a gain from the merger of around NOK 20 billion in the first quarter, according to the report.
The merger of Dtac and True leads to the creation of a new company by the name True Corporation Public Company.
“By combining the strengths of True and dtac, the company brings together the best of both to create a leading telecommunications and technology player,” Telenor writes in a statement.
According to the Norwegian company, the transaction is the largest telecom merger in Southeast Asia measured in total company value.
The new company will have around 55 million mobile customers, five million broadband customers and 3.2 million TV subscribers.
Revenues are estimated at around $6.2 billion and a gross profit of around $2.4 billion.
Source: dn.no
