Telenor insists DTAC takeover 'fully legal'

22 Sep 2006
00:00

Telenor of Norway remained confident that its takeover last year of United Communication Industry (Ucom) and mobile-phone affiliate DTAC would be found to be fully in line with local laws.

'We are confident that the company's shareholding structure will be found in compliance with Thai law,' Arve Johansen, head of Telenor's Asia operations, told the Bangkok Post.

Thailand's Commerce Ministry last week announced it was widening a probe into nominee shareholding structures used by a number of companies, including firms related to Ucom and DTAC.

The inquiry follows an ongoing investigation of Kularb Kaew and other companies set up by Singapore's Temasek Holdings after its acquisition of telecom giant Shin earlier this year.

The Business Development Department reportedly concluded earlier that Kularb Kaew was acting as a nominee for Temasek to bypass the 49 % foreign shareholding limit.

Johansen said Telenor was closely monitoring the situation in terms of possible regulation changes.

'As long as regulations remain unchanged, our structure is legal,' he said, adding that Telenor would comply with all government regulations.

'Once authorities come up with any clear indications or new rules, we will definitely comply with the resolutions with no conditions,' he said, adding that Telenor had a long-term commitment to DTAC and strong confidence in the future growth of the Thai telecom industry.

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