Telenor and CP Group to merge Thai telecom units for $8.6 billion

© Reuters. FILE PHOTO: Telenor flag flutters next to the company’s headquarters in Fornebu, Norway, June 1, 2017. REUTERS/Ints Kalnins/File Photo

(Reuters) – Norway’s Telenor and Thailand’s Charoen Pokphand Group (CP Group) have agreed to merge their telecom units in Thailand, the Oslo-based company said in a statement on Monday, in a deal valued at about 282.8 billion baht ($8.61 billion).

The deal, which Telenor had flagged on Friday, would merge the telecom operations of Telenor’s Total Access Communication (Dtac) and CP Group’s True Corporation.

The offer of 47.76 baht ($1.45) a share represents a premium of 15.8% to Dtac’s last close as of Friday and the offer of 5.09 baht ($0.1549) a share represents a premium of 17.8% to True’s close on Friday.

Telenor and C.P. group will aim for an ownership share of around one-third each in the merged entity, the company said.

Shares of both Dtac and True were up on Monday.

The combined company will be listed on the Thai stock exchange.

($1 = 32.8600 baht)

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