China Mobile buys big chunk of Thai operator's shares

Summary:China Mobile takes 884 million USD stake in a leading Thai telecommunications operator, True Corporation, becomes second largest owner.

China Mobile International Holding Limited, a company fully owned by China Mobile, acquired 28.57 billion Baht (884 million USD) of True Corporation's non-public offerings at 6.45 Baht per share. 

Meanwhile, True Corporation also issued 36.43 billion Baht of shares to its other shareholders, diluting China Mobile's holding to 18 per cent, while maintaining Charoen Pokphand Group as its biggest controlling shareholder.

The two companies are expected to ccoperate in multiple fields such as technology, network establishment, procurement, and market expansion, according to the tencent report. 

China Mobile has reportedly been active in seeking opportunities for strategic investments overseas, as well as opportunity to internationalize its operation. The purchase of True Corporation, one of Thailand's leading telecommunications operators, is considered a milestone for the Chinese giant in its plans to grow its business and profit.

True Corporation, which provides land lines, HD television, and 3G and 4G mobile internet services to about 29 million users, had until now been the only major Thai telco without a foreign partner

Topics: Mobility, 4G, China

About

Liu Jiayi is a Hong Kong-based writer and editor.He produces video stories for Al Jazeera English and Severn News Australia, and also worked as the video editor for the Hong Kong-San Francisco Ocean Film Festival 2012. He is studying under a Master of Journalism Programme at the University of Hong Kong.

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