Telenor Divests Thailand Holdings in Landmark NOK 39 Billion True Corp Transaction

Norwegian telecommunications giant Telenor ASA has announced its complete withdrawal from Thailand after 25 years of operations, with the company agreeing to sell its entire stake in True Corp (TRUE.BK) in a deal valued at approximately NOK 39 billion. The divestment marks the end of a significant era for Telenor’s presence in the Southeast Asian nation and represents a strategic shift in the company’s global portfolio management.

Strategic Exit from Thailand Market After Quarter Century

Telenor’s decision to exit Thailand comes as the telecommunications sector undergoes significant consolidation, particularly following the March 2023 merger between dtac and True that reshaped the competitive landscape. The company’s 25-year tenure in Thailand positions this sale as a pivotal moment for the Nordic operator, signaling a reassessment of its international commitments. The transaction is expected to close within a few months, providing Telenor with substantial liquidity to redeploy capital elsewhere.

Deal Structure with Arise Digital Technology

The core agreement involves the sale of a 24.95 percent stake to Arise Digital Technology Co. Ltd., a company owned by prominent Thai businessman Khun Suphachai Chearavanont. The pricing has been set at THB 11.70 per share, reflecting strong confidence in True Corp’s valuation post-merger. Additionally, both parties have negotiated a put/call option mechanism covering the remaining 5.35 percent shareholding, to be exercised two years after the initial transaction completion at either THB 11.70 per share or the prevailing market price, whichever is higher.

Financial Impact and Currency Considerations

The transaction carries substantial financial implications for Telenor when translated into Norwegian currency terms. The initial sale is projected to generate gross proceeds of THB 100.9 billion, equivalent to approximately NOK 32.3 billion at current exchange rates. The subsequent option exercise is anticipated to yield an additional THB 21.9 billion, representing roughly NOK 6.9 billion. The agreed price reflects a 36 percent premium relative to True’s first trading-day close following the 2023 merger, alongside a 4 percent uplift compared to the three-month volume-weighted average price, demonstrating favorable valuation dynamics despite market headwinds.

Telenor expects to record an accounting profit of around NOK 14.7 billion upon completion of the initial transaction, with NOK 1.6 billion attributable to the recycling of historical currency translation differences previously held in other comprehensive income. The favorable forex translation impact underscores how currency dynamics can materially influence the net proceeds from international asset disposals.

Market Response and What’s Next

Trading on the Oslo Stock Exchange, Telenor shares closed marginally higher on the session following the announcement, rising 0.41 percent to NOK 146.40. The company has committed to providing additional details regarding the deployment of proceeds when it releases its fourth-quarter 2025 financial results on February 6, offering investors greater clarity on capital allocation priorities moving forward.