TOT Voiced To Take Over Thai Mobile

May 2008 | Company News Alert

A long and convoluted discussion over the future ownership of Thai Mobile is understood to have come to an end, according to the Bangkok Post. Established as a joint venture between Thailand's two state-owned operators, TOT and CAT Telecom, the future of the operator was uncertain. Nursing debts of THB7bn, Thai Mobile was largely viewed as a problem for its owners. However, facing a deadline from the National Telecommunications Commission to resolve the issue, a tentative agreement has finally been reached. Under the existing agreement, TOT will buy out CAT's 42% stake in the operator at a cost of THB2.4bn (US$75mn), raising its shareholding to 100%. This will also include Thai Mobile's debts. While both parties have agreed to see payment made in instalments; the duration of time has not been reached with TOT arguing for 12 years and CAT Telecom five years.

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