Summary The deal will transform us into a profitable company, says True Corp. CEO.
BANGKOK (AFP) - Thai telecommunications firm True Corp. has agreed to sell an 18-percent stake in its business to China Mobile for about 28.6 billion baht ($880 million) under a strategic partnership.
True said it would use the money to reduce its debts and pursue its goal of becoming "an all-powerful leading convergence telecommunications player", bringing together broadband Internet, pay TV and mobile telephone services.
The deal "will transform us into a profitable company and subsequently into a formidable telecommunication player in the region", True Corp. CEO Supachai Chearavanont said in a statement.
True said the partnership, which comes despite investor uncertainty in the wake of a military coup in Thailand on May 22, "reflects the international business community s confidence in Thailand s long-term economy".
The Thai firm, part of the agriculture-to-retail empire of billionaire tycoon Dhanin Chearavanont, also plans to raise an additional 36.4 billion baht by selling new shares to existing shareholders.
China Mobile, the world s biggest mobile operator by subscribers, said the purchase reflected its international expansion and search for strategic investment opportunities overseas.
"China Mobile views True Group s unique convergence business strategy and long-term vision as strong potential to bring about long-term growth profitability," China Mobile CEO Li Yue said in the statement.
