(The Nation via NewsEdge) Thai mobile carrier DTAC has deferred its plan to list shares on the local bourse to sometime next year after failing to conclude the delisting plan of its parent, United Communication Industry (Ucom).
The delay of its planned initial public offering this year means DTAC will not be able to benefit from a 5% reduction in corporate tax.
Listing on the Stock Exchange of Thailand this year would have qualified DTAC for the reduction, from 30% to 25%, for the next five years in line with Finance Ministry incentives to encourage Thai companies to list on the bourse.
DTAC chief financial officer Petter-Borre Furberg said the fact that it could not list this year in order to get the tax reduction had no substantial impact on the company.
According to its filing to the Singapore stock exchange, Singapore-listed DTAC still intends to launch its IPO on the SET, although the listing will not happen this year.
DTAC submitted an application to the Securities and Exchange Commission and the SET in October seeking their approval to trade shares on the SET, meaning it would have a dual listing in the Thai and Singaporean stock markets.
Under SET regulations, Ucom has to be de-listed from the local bourse within six months of DTAC's listing. However, DTAC is not yet able to conclude a 'satisfactory delisting plan' with Ucom this year.
'The board of directors of the company will put the issue to a shareholders' meeting, which is likely to take place in the first half of 2007,' DTAC said in a statement to the Singapore exchange.
© 2006 The Nation
© 2006 Dialog, a Thomson business. All rights reserved