Satellite operator Thaicom has conducted a feasibility study to have Lao Telecommunications Co (LTC) listed on both the Stock Exchange of Thailand (SET) and the Lao Securities Exchange (LSX) on a dual-listing basis.
Thaicom chief executive officer Suphajee Suthumpun said yesterday that the plan would be made clearer in the first half of next year. The satellite operator has to consult with the Lao government before making a final decision. The Lao government owns a majority 51-per-cent stake in LTC, while Thaicom owns the remainder. Suphajee said that personally she believes the Lao government would want to have LTC listed in the Lao stock market first.
As of the end of the third quarter, LTC had a total of 1,296,076 phone subscribers. Currently, telecom market competition remains high in Laos, where there are four mobile network operators. LTC leads the industry in terms of market share.
The Thaicom board of directors on November 12 passed a resolution giving Shenington Investment Pte Ltd (Shen) approval to dispose of all 24,000,000 ordinary shares in Shen's wholly owned Cambodia-based telecom operator Mfone Company Limited (Mfone) to INT Management Service. Thaicom holds a 51-per-cent stake in Shen.
The value of this transaction is equal to the enterprise value of Mfone, which was calculated at US$98.44 million (Bt3.02 billion). Net all debts, Mfone has a negative enterprise value. The company sold Mfone at a price of $100.
This transaction involves the condition that both parties must completely perform all necessary activities within 60 days so that the transaction becomes effective. The completion of this deal means that next year, Thaicom will not be hit with an average quarterly loss of Bt130 million from Mfone.
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Article source: http://www.thethailandlinks.com/2012/11/18/thaicom-mulls-dual-listing-for-ltc/
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