The Thai market regulator has initiated an investigation after an individual surfaced with an estimated one billion US dollars in shareholdings in telecom titan True Corporation, thereby becoming one of its largest shareholders. The regulatory body intends to gather further details and seek explanations from relevant entities in compliance with the standard procedures, as per a recent announcement.
The individual, identified as Supaporn, disclosed in a regulatory filing last week that she had amplified her stake in True, which is based in Bangkok, from 3.9% by purchasing shares through an international broker. Her investment equates to roughly 32 billion baht ($960 million), calculated based on True’s closing price on Monday.
True Corporation enjoys the backing of Charoen Pokphand Group (CP Group), one of the largest conglomerates in Thailand, and holds the position of the country’s second-largest mobile phone service provider. Earlier this year, Arise Digital Technology, under the control of True’s chairman Suphachai Chearavanont, bought approximately a 25% stake in True from Norway’s Telenor for 39 billion kroner (US$3.9 billion). Both CP Group and Telenor had studied the possibility of merging their telecom units in 2021.
This deal also included an opportunity to buy an extra 5.4% stake within a two-year timeframe.
However, there seem to be some inconsistencies in the details provided by Supaporn in her regulatory filing, according to a statement issued by True. The firm stated that it has never offered preference shares to the public and currently does not have any outstanding preference shares. The company has reportedly informed the SEC about the inconsistency.
The Thai regulator has issued a warning that stern legal measures would be enforced if the ongoing probe uncovers any breaches of the prevailing regulations.
True also mentioned that the disclosure made by Supaporn about her augmented stake was labeled as preliminary, indicating that the details are incomplete and remain under scrutiny.
On a different note, this Monday marked the completion of the sale of a 10% stake in True by the CP Group, achieved via a series of transactions as per an official statement.
What initiated the review by the Thai market regulator?
The review was initiated after an individual emerged owning nearly one billion US dollars in shareholdings in True Corporation, making her one of its largest shareholders.
Who is backing True Corporation?
True Corporation is backed by Charoen Pokphand Group, one of Thailand’s largest conglomerates.
How did True Corporation react to Supaporn’s regulatory filing?
True Corporation pointed out some inconsistencies in Supaporn’s filing, stating that the company has never offered preference shares to the public and currently does not have any outstanding preference shares. The firm has notified the SEC about the discrepancy.
