Suphachai rules out digital merger

Message comes days after Telenor sale

- KOMSAN TORTERMVASANA SIRIVISH TOOMGUM

Arise Ventures Group, the new major shareholder in True Corporation, insists it has not considered merging its True Internet Data Center Co Ltd (True IDC) and Ascend Money into True’s organisational structure, as it could burden True’s telecom business.

An analyst asked if Arise would consider combining all telecom and digital businesses under the True umbrella, and Suphachai Chearavanont, chairman of True Corp and chief executive of Arise Ventures Group, said the companies have different stakeholders.

“They have raised their own capital over the past decade. At the moment, I see no need for such a merger or combination. I think they can go separately because True IDC will require a lot of capital, and it should not be a burden for the telecom business,” Mr Suphachai said during a meeting with analysts on Monday.

The Norwegian telecom operator Telenor agreed to sell a 24.95% stake in True to Arise Digital Technology Co, a subsidiary of Arise Ventures Group.

In addition, Arise and Telenor agreed on a mutual put/call option for the sale of the remaining 5.35% shareholding two years after the closing of the initial sale.