TRUE’S SHAREHOLDERS APPROVE RECAPITALIZATION PLAN, AIMED AT STRENGTHENING BUSINESS CONVERGENCE PLATFORM. 

TRUE’S SHAREHOLDERS APPROVE RECAPITALIZATION PLAN,
AIMED AT STRENGTHENING BUSINESS CONVERGENCE PLATFORM.
NEW SHARE SUBSCRIPTION PERIOD SET FOR AUGUST 22, AND 25-28

Bangkok, July 25, 2014 - True Group’s shareholders today approved the Company’s recapitalization plan at the Extraordinary General Meeting of Shareholders 1/2557 which comprises the issuance of 10,077,712,886 new shares in preparation for both a private placement to the new strategic partner, China Mobile, and a rights offering to existing shareholders. The subscription period for the rights offering has been set for August 22 and 25-28, 2014.

Mr. Suphachai Chearavanont, President & CEO, True Corporation Plc, said “Following the recent success in establishing the TRUE Telecommunications Growth Infrastructure Fund (TRUEIF) in 2013 which enabled the Company to reduce its debt burden by about Baht 25 billion, True Group has moved forward with its transformation with the announcement of a strategic partner and a recapitalization plan aimed at strengthening its financial status in all aspects. The Company’s shareholders have approved the plan and share offerings to both the existing shareholders and new strategic partner at the Extraordinary General Meeting of Shareholders 1/2557.

“Within the Baht 65,000 million recapitalization plan, True Group will offer 4,429,427,068 new shares in a private placement to China Mobile at the price of Baht 6.45 per share, generating a total of Baht 28,569 million. After the completion of this deal, China Mobile will own 18 percent of the number of shares issued and fully paid after the recapitalization. At the same time, True Group will also offer not more than 5,648,285,818 new shares to the existing shareholders at Baht 6.45 per share amounting to Baht 36,431 million. The Company is confident that existing shareholders will exercise their subscription rights, while its major shareholder, Charoen Pokphand Group, is ready to support this initiative so that True will receive the full amount of the rights offering.

“After the completion of the recapitalization plan, which is expected to be in September this year, True Group will be able to significantly reduce its overall debt and strengthen its financial fundamentals. We will then be ready to forge ahead in becoming an all-rounded leader in convergence and well-prepared for competition in the Asian region,” Mr. Suphachai concluded.

The subscription period for the rights offering will take place on August 22 and 25-28, 2014. Shareholders entitled to subscribe for the newly issued ordinary shares under the rights offering are those whose names are recorded in the Company’s shareholders registry book on August 4, 2014 (Record Date). The XR (Excluding Right) date has been set for July 31, 2014 therefore the last trading day for purchase of True shares to be eligible for the rights offering is July 30, 2014.

 

 


      
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