Thai Cabinet OKs Telecom Agency Split, Corporatization
Thailand’s cabinet Tuesday approved the division of the state Communications Authority of Thailand, or CAT, into two registered companies, probably by next month.
One division will operate the country’s postal service. The other, to be known as CAT Telecom, will operate CAT’s international fixed-line telephone service and hold its share of a joint-venture cellular-phone service with a subsidiary of Hong Kong’s Hutchison Whampoa Ltd.
CAT Telecom is expected to make an initial public offering of shares in 2004, CAT Chief Executive Dhiraphongs Suddhinond told reporters after the cabinet meeting.
The postal service company isn’t expected to be listed initially, he said.
Dhiraphongs is to become managing director of the postal unit, and he will serve as acting managing director for CAT Telecom until the new chief is officially appointed.
CAT Telecom will have 6,000 employees and a registered capital of 10 billion baht ($1=THB41.604). It will have total assets of THB90.9 billion and liabilities of around THB6.9 billion.
“The low level of debt of CAT Telecom will make it attractive to investors whenever it taps the market,” Dhiraphongs said.
The postal service company will have 14,000 staff and a registered capital of THB750 million baht. It will have total assets of THB13.6 billion and liabilities of THB12.7 billion.
Lehman Brothers was earlier selected as one of three financial advisers who will oversee CAT Telecom’s IPO.
-By Laurent Malespine, Dow Jones Newswires; 662-2660744; Laurent.Malespine@ Dowjones.com
-Edited by Karen K. Lane
Dow Jones Newswires
07-08-03 0403ET
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