CP Group and Telenor Group are considering establishing an Equal Partnership to transform into a technology company under the Technology Hub strategy.

Charoen Pokphand Group (CP Group) and Telenor Group have announced their consideration of an Equal Partnership to support True Corporation Public Company Limited (TRUE) and Total Access Communication Public Company Limited (DTAC) in restructuring their businesses into technology companies under the Technology Hub strategy. This includes enhancing new technology businesses, creating a digital ecosystem, and establishing a startup fund to align with Thailand 4.0 strategy, aiming to position Thailand as a regional technology hub.

During this restructuring study, the businesses of True and DTAC will continue to operate normally. Meanwhile, CP Group, as the major shareholder of True, and Telenor Group, as the major shareholder of DTAC, aim to reach a conclusion on the details of the Equal Partnership, which will result in CP Group and Telenor Group holding equal shares in the new company.

Furthermore, True and DTAC will proceed with various conditions, including satisfactory completion of due diligence, obtaining relevant approvals from the boards and shareholders of both companies, and completing other related legal procedures.

Mr. Supachai Chearavanont, CEO of Charoen Pokphand Group and Chairman of True Corporation Public Company Limited, stated, "In recent years, the overall telecommunications industry has rapidly changed due to new technologies and an open competitive market, with large digital industry players offering more digital services. These factors require telecommunications operators to adapt quickly, not only in developing intelligent connectivity services but also in enhancing capabilities and speed in creating value-added services from communication networks and delivering new technologies and innovations to customers. The impact of these changes makes the transformation of Thai companies into technology firms crucial for competing with leading global players."

"The transformation into a technology company aligns with Thailand 4.0 strategy, aiming to become a regional technology hub. Telecommunications will remain a part of the structure and must develop additional businesses focused on technology, including artificial intelligence, cloud technology, IoT, smart devices, smart cities, digital media solutions, and restructuring to support investments in technology companies (Tech Startups) through the establishment of a Venture Capital fund focused on investing in Thai startups and foreign startups based in Thailand. Additionally, we plan to explore space technology to apply it to our business, which opens up new avenues for innovation as well," he added.

“Transitioning to a technology company is the key to enabling Thailand to leap forward and create prosperity across the country. As a Thai company, we are committed to being part of unlocking the immense potential of Thai businesses and digital entrepreneurs, while also attracting the best talents and cutting-edge businesses from around the world to operate in Thailand,” Mr. Supachai emphasized.

“Today marks another step forward in this direction, and we hope it will empower the younger generation and create technology jobs that harness their potential to become entrepreneurs delivering value through technology and innovation, utilizing this advanced digital telecommunications infrastructure,” Mr. Supachai stated.

Mr. Sigve Brekke, President and CEO of Telenor Group, said, “We have experience driving the digital world in various countries in Asia. As we continue to develop, both consumers and businesses expect more advanced services and higher quality connectivity. We believe this new company will be part of elevating Thailand to become a leader in the digital world by integrating technological advancements with customer-attractive services and offering high-quality products.”

Mr. Jørgen Rostrup, Vice President and CEO for the Asia region, stated, “This agreement will help drive our strategy to strengthen our foundation in Asia, create value, and develop the market in this region in the long term. We have a long-standing commitment and mission to both Thailand and the Asia region, and this collaboration will further strengthen that commitment. Access to new technologies and the best human resources will be a crucial factor for the new company being established.”

Mr. Jørgen added, “The new company will establish a fund valued at approximately 100 to 200 million USD to support and promote entrepreneurs and startups on the digital platform, focusing on creating new products and services for the benefit of consumers in Thailand.”

Both CP Group and Telenor Group are confident that this consideration of establishing an Equal Partnership will foster innovations and technologies that will be of utmost benefit to consumers and the Thai public, supporting Thailand's goal of becoming a regional technology hub in line with the country's strategy.