Time dotCom to invest $62m in large Thai telco in pursue of data centre, network expansion
Company plans to acquire a minority stake through a two phase process, both expected to be closed by Q4 2017.
Malaysian telecommunications provider Time dotCom Bhd has unveiled plans to invest $62.64m in acquiring a 49% stake in Symphony Communication Public Company as the provider intensifies its plans to build its telecommunications and data centre footprint across the south east of Asia.
According to Time’s CEO Afzal Abdul Rahim, the company has put forward to the board of directors of Symphony the strategic investment proposal.
The company said it has received support for the acquisition from the current Symphony shareholders, which amount to 47% of the fixed-line telecommunications provider’s shares.
However, the company will not carry out the purchase in one go. According to a statement released by Time, the investment will be carried out in two distinct phases.
Initially, the company will buy 37% of the outstanding shares from existing shareholders through a partial voluntary tender offer. Each share will be bought at $0.35, amounting to $41.5m.
Following the completion of the partial voluntary vender offer, Time will then take part in a rights offering of nearly $28.3m ($0.25 per share) set to be launched by Symphony.
Both proceedings are expected to be concluded in Q4 2017.
According to the same statement, the money raised through the rights offering will be used to build out Symphony’s fibre optic network in Thailand, including its data centres, and launch new products and services.
Rahim said: “TIME has long been an admirer of Symphony’s success and we are delighted to now be able to cement our partnership by proposing this strategic investment.
“We are very encouraged by the potential of the Thai market, especially given the launch of the Digital Economy Masterplan and the development of the Asean Economic Community, and look forward to working with the team at Symphony to grow the company to the next level.”
Symphony’s president Teerarat Pantarasutra, said: “The Board of Symphony is excited to have received this proposal from TIME.”
“We look forward to learning from TIME’s experience in other markets and to their help in launching new market segments and products in Thailand”.