Billionaire Dhanin Chearavanont to sell 10% stake in Thailand’s second largest mobile carrier True
Thai billionaire Dhanin Chearavanont and his family’s Charoen Pokphand Group are divesting 10% of their holding in Thailand’s second largest mobile carrier True Corp.
CP Group – one of the world’s largest animal feed and livestock producers – is selling 3.46 billion True shares worth about THB50 billion (US$1.6 billion) based on Thursday’s closing price, mainly to Swiss banking giant UBS, according to a regulatory filing submitted late Friday to the Stock Exchange of Thailand.
Dhanin Chearavanont speaks at a forum during the 12th World Chinese Entrepreneurs Convention in Chengdu, China, on September 25, 2013. Photo by Imaginechina via AFP |
Half of the shares have already been disposed of. Upon completion of the transaction with UBS, the group’s stake will fall to 19.7%, Forbes reported.
The privately held conglomerate did not provide details on the reason for the partial sale of its interest in True.
The divestment follows a late-January agreement by Arise Digital Technology Co – controlled by Supachai Chearavanont, Dhanin’s youngest son – to acquire Norwegian telecommunications firm Telenor Group’s 24.95% stake in True for around $3.9 billion.
Market observers believe the transaction will strengthen CP Group’s balance sheet, reduce debt and free up funds for reinvestment in other operations.
The share sale comes after True’s stock climbed to a record closing high of THB14.70 on Thursday, as the telecom operator recently swung back to profitability, posting a fourth-quarter net profit of THB4 billion, compared with a net loss of THB7.5 billion a year earlier.
“This deal should be about shareholder restructuring, selling shares to bring cash into CP while retaining comprehensive control over True,” said Wetid Tangjindakun, analyst at KGI Securities, in Bangkok.
With an estimated net worth of $35.7 billion, Dhanin and his siblings rank among Thailand’s richest families.
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