Thai operators True, dtac to merge into new telecom-tech company

True Corp. and Total Access Communication PCL, also known as dtac, entered into an agreement to form a new telecom-tech company, according to a Feb. 18 news release.

The agreement comes after the companies completed their merger due diligence and secured approval from their respective boards of directors. True and dtac have also filed a merger notification with the National Broadcasting and Telecommunication Commission.

The planned new entity will be a merger of equals, with telecommunications remaining the core business. Together with partners, the combined company aims to raise $100 million to $200 million in venture capital.

After obtaining regulatory approval, the companies plan to hold a voluntary tender offer, wherein True and dtac shareholders will have the option to participate in the tender or continue as shareholders in the merged company.

The formation of the new company, which will be listed on the Stock Exchange of Thailand, is supported by sponsoring shareholders Charoen Pokphand Group and Telenor ASA.

True and dtac expect to close the transaction within the year.