Telenor sells ownership in True Corporation
After 25 successful years in Thailand, Telenor has agreed to sell its stake inTrue Corporation for a total value of approximately NOK 39 billion.
Telenor Group has signed an agreement with Arise Digital Technology CompanyLimited, a company owned by Khun Suphachai Chearavanont, to sell 24.95 percentof the shares in True at THB 11.70 per share. In addition, Arise and Telenorhaves agreed a mutual put/call option for the sale of the remaining 5.35percenttwo years after closing of the initial sale at the higher of THB 11.70 pershareand the market price prior to the term of the option.
"We are pleased to have reached an agreement with Arise about the sale of ourstake in True and I would also like to extend a special thanks to True'semployees and customers. We are confident that the engaged people in True willcontinue to grow and innovate for its around 60 million customers", saysBenedicte Schilbred Fasmer, CEO of Telenor.
Ms Schilbred Fasmer also expresses gratitude to Khun Suphachai Chearavanontforthe constructive discussions, which facilitated a mutually beneficialtransaction.
"We are committed to sustaining our positive momentum, delivering profitablegrowth and value creation in True in the years ahead. We appreciate the closecooperation we've had with Telenor in signing the definitive agreements", saysKhun Suphachai Chearavanont, owner of Arise.
A valuable journey for Telenor's shareholders
Over 25 years, Telenor went from investing in TAC in the year 2000 to buildingdtac into one of Thailand's leading operators, making mobile connectivityaffordable and widely accessible to tens of millions of Thais.
In 2023, dtac and True completed a landmark merger to form the new TrueCorporation listed on Stock Exchange of Thailand. That was then SoutheastAsia'slargest telecoms deal and created Thailand's largest telecom tech company,withthe scale to invest in 5G, AI and digital services.
"Before the 2021 merger talks, our shareholding in Thailand was valued at NOK12billion. Today the value of our shareholding stands at some NOK 39 billion,based on the agreed sale price and the current exchange rate. Together withourpartner True Corporation we have established market leadership in Thailandwhilealso generating shareholder value", says Ms Schilbred Fasmer.
The transaction price of THB 11.70 per share represents a 36 percent increasetothe closing price for the first trading day of True Corporation after themergerin March 2023, and a 4% premium to the last 3 months volume weighted averageshare price.
Two divestments in Asia
"At our Capital Markets Day in November, we said that we looked for structuralvalue creation opportunities in Asia. With the completion of the sale ofTelenorPakistan in December, and the agreement to sell our shares in True we havetakenbig steps in delivering on that strategy", says Ms Schilbred Fasmer.
These divestments are part of Telenor's strategic commitment to structuralsimplification, as outlined at the Capital Markets Day. The transactions willprovide focus and resources for Telenor's four strategic priorities towards2030: Growth through customer excellence, technology-led transformation,tapering expenses and focus on creating shareholder value.
Telenor expects the sale of True shares to contribute to our stated goal toincrease the return on capital employed. The transaction also underpins ourgoalto evolve into a more Nordic-centric provider of secure connectivity overtime.
Financial effects
The proceeds from the sale of 24.95 percent of the sale in True will be THB100.9 billion (approx. NOK 32.3 billion at the current exchange rates), andtheproceeds from exercising the option after two years will be THB 21.9 billion(approx. NOK 6.9 billion at the current exchange rates).
Top-line growth, efficiency realisation and capital allocation are the threekeydrivers of Telenor's shareholder-value creation strategy. Capital discipline,shareholder remuneration, and having an effective balance sheet remainessentialto deliver on this over time. Telenor will provide further detail on theanticipated use of proceeds in connection with Telenor's Q4 2025 resultspresentation on 6 February 2026.
Telenor will recognise an accounting gain of approximately NOK 14.7 billion(assuming current exchange rates) at the closing of the initial sale. NOK 1.6billion of the gain is related to recycling of historical currency translationdifferences, previously recognised as other comprehensive income, with noeffecton Telenor's equity. The transaction is subject to customary conditions and isexpected to close within a few months.
For additional information, please contact:Frank Maaø, SVP Capital Markets and Investor Relations (+47 91674045) Thomas Midteide, SVP and Chief Communications Officer (+47 96232017)
Information in this announcement is considered inside information pursuant toEUMarket Abuse Regulation (MAR) and subject to the disclosure requirementspursuant to MAR Article 17 and Section 5-12 of the Norwegian SecuritiesTradingAct.
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