The leader pledges not to compromise on the value and ethics of the company after the merger,
Mr. Brekke defends the position and independence of his cabinet.
Telenor Group, the major shareholder of Total Access Communication Plc (DTAC), has reaffirmed its intention to maintain good governance and high business standards as it merges with True Corporation to create a telecommunications technology company.
When asked at a recent press conference in Bangkok if DTAC’s management style and direction would be affected because some observers believe True has the opposite standards of “good governance”, Sigve Brekke, Chairman and CEO of Telenor Group, quickly defended the position and independence of his company.
“We are not going to compromise on our ethics and values. We spent a lot of time with CP Group on how the new company should be run and what standards this new company should have,” said Mr. Brekke.
“So we will continue to focus very strongly on our limits in terms of compliance, governance and how we conduct our business in the right way. This is a very important part of the agreement that we have. .”
Jorgen C Arentz Rostrup, Executive Vice President and Director of Telenor Asia, echoed Mr. Brekke’s statement and highlighted global standards.
“This conversation is getting easier because the global perspective, the framework and the standards around this are pretty clear. It’s been a really good conversation. We have these mechanisms in place to ensure that,” he said.
DTAC and True announced that their new venture would be based on an “equal partnership” with goals to pursue telecommunications business, create a digital ecosystem and create a fund to support startups.
“Equal partnership means we’re happy to have equal ownership – that’s a formal part of it, but it’s more based on us being very comfortable for both parties than we are. we have the same outlook and ambition for the business and plans on how to proceed in the future,” Mr. Rostrup said.
Telenor revealed it spent a lot of time with CP Group executives before publicly announcing the proposed merger in November 2021.
Elaborating on the balance of power of two giants, Mr Brekke said: “It’s about equal participation, but also equal influence. It’s not DTAC merging with True, and no merge of True with DTAC.influence means.”
True and DTAC both got the go-ahead from their shareholders in April to proceed with the merger.
The closely watched consolidation of the two telecom giants means they will have the most subscribers in the Thai market, overtaking Advanced Info Services (AIS) – a move which watchdogs say would reduce competition in the market and disadvantage consumers.
The merger is pending approval by the National Broadcasting and Telecommunications Commission (NBTC).
Still, Mr Brekke revealed the regulator is expected to make its final decision by the end of this month, adding that he has a meeting with the NBTC to iron out the kinks and clarify DTAC’s position.
Recently, Telenor received the green light to complete a major merger in Malaysia when the country’s regulator approved a deal to combine Telenor’s Digi with Malaysia’s oldest mobile telecommunications provider, Celcom Axiata Berhad.
When the merger is complete, what’s in store includes expanding into new technological frontiers using cutting-edge technologies such as artificial intelligence, cloud and the Internet of Things.
This new growth is labeled Growth 2.0. It differs from version 1.0 because it no longer focuses on the number of subscribers or access to mobile phones.
Additionally, the new company aims to support Thailand’s digital leadership role by raising venture capital. The move will focus on local and foreign startups as well as a plan to study space technology to integrate into its business.
“We want to be good for startups. We will support investments in them and create an environment for that to happen – stronger and faster than what it does today. We will create a capital fund- venture initiated by us and backed by others It will target Thai and foreign startups based in Thailand Working together hand in hand will benefit everyone,” Rostrup said.
The planned merger will advance the company’s strategy to strengthen its presence in Asia while creating value and supporting long-term market development in the region.