Thai Operator Denies China Mobile Tie-Up
Thailand's True Corp has denied reports that it is in talks with China Mobile regarding a possible partnership. True Corp shares had jumped by nearly a third over the past couple of days as local media ran the rumours.
"The company would like to clarify that the rumours are purely speculation and that there is no truth in this matter," the company said in a statement. Its share price fell sharply on the clarification.
Earlier this week, China Mobile's Chairman and Chief Executive Wang Jianzhou confirmed that China Mobile is seeking opportunities to acquire stakes in firms in Asia and Africa.
True Corp is a communication conglomerate, and a subsidiary of the Charoen Pokphand group. True controls Thailand's largest cable TV provider TrueVisions, its largest ISP TrueOnline and controls 76% of the country's third-largest mobile operator, TrueMove.
True Corp's chief financial officer, Noppadol Dej-udom recently confirmed that the company is considering a sale of its mobile network, or part of its shareholdings in cable operator TrueVisions to reduce its debt mountain. He noted though that the company does not need to refinance any debt until the middle of next year, so any sale should not be expected immediately.
"Forget about any deal over the next four months. It's impossible. The political situation and overall telecommunications market is simply not supportive of an asset sale," he said.
Posted to the site on 2nd October 2008
