Orange Withdraws from Thailand

Orange has agreed to sell its 39% stake in Thailand's GSM network operator, TA Orange to TelecomAsia for a token one Baht (US$0.03). The transaction will effectively give TelecomAsia an 83% shareholding in TAO. It is anticipated that TAO will conclude its debt refinancing arrangements with creditors in the second quarter of this year before the transaction with Orange is concluded.

Orange SA has agreed to sell the shareholding for one Baht, but will retain a 10% shareholding (with some anti-dilution protection). BITCO, the parent of TAO, had a book value of US$142 million as at December 31, 2003.

TelecomAsia President, Supachai Chearavanont said "We have developed strong cellular business management expertise. With total management control of TA Orange, TelecomAsia will be able to proceed with exciting new developments that will increase the range of bundled cellular, wireless and wireline products and services that can be offered to customers in a single customized package. "Having this ability is key to making the most of the new opportunities that will become available as the telecommunications industry is liberalized. In addition, having management control will allow us to consolidate many aspects of the operations and achieve significant cost reductions for both companies.

"This purchase underlines our commitment to improving our position in the cellular market and our belief that TA Orange will continue to grow strongly in the future. Over the past six months we have seen a strong improvement in TA Orange's financial performance and subscriber growth," Khun Supachai said.

It is estimated that Orange invested some US$550 million in the venture"

Posted to the site on 10th March 2004