Norwegian telecom group Telenor announced on Thursday that it will sell its 30.3% stake in Thailand’s True Corporation for 39 billion Norwegian crowns (US$3.92 billion or RM15.8 billion), marking its second major divestment from Asia in recent months. The news lifted Telenor’s shares by 8%.
Under the agreement, Telenor will sell 24.95% of its stake to Arise Digital Technology Company, owned by Khun Suphachai Chearavanont, with the remaining 5.35% to be sold two years after the initial closing.
Telenor has been a significant investor in Asian telecoms since the 1990s, building operations in Bangladesh, Thailand, Malaysia, and Pakistan. In recent years, the company has signaled openness to divestments as the regional telecom market matures.
“With the completion of the sale of Telenor Pakistan in December and the agreement to sell our shares in True, we have taken major steps in delivering on our strategic plan,” Telenor CEO Benedicte Schilbred Fasmer said in a statement.
Telenor’s remaining Asian assets, including a 33.1% stake in Malaysia’s CelcomDigi and a 55.8% stake in Bangladesh’s Grameenphone, could also be considered for future deals, the company said. “It’s business as usual until such time that opportunities present themselves,” Chief Financial Officer Torbjorn Wist told Reuters. He added that the group will focus on creating value from its remaining assets in Malaysia and Bangladesh while exploring potential structural opportunities over time.
True Corporation, one of Thailand’s largest telecom operators, serves around 60 million customers. Telenor expects to record an accounting gain of 14.7 billion Norwegian crowns at the current exchange rate upon the closing of the initial stake sale and plans to provide further details next month on how it will use the proceeds.
The divestment is expected to close within a few months and is projected to enhance Telenor’s return on capital employed while supporting the company’s strategy to concentrate more of its business in the Nordic region.
