Advanced Info Service (AIS), on Nov 15, announced that its board of directors has approved the acquisition of Triple T Broadband Public Company Limited (TTTBB) and Jasmine Broadband Internet Infrastructure Fund (JASIF).
AIS is an associate of SGX-listed Singapore Telecommunications (Singtel).
In its statement, AIS says the approval comes even though the condition precedents to terminate the Rental Assurance Agreement and the amendment of the Main Lease Agreement were not approved from JASIF’s unitholders meeting on Oct 18.
According to AIS, the acquisition is seen as being “appropriate” for its long-term business goals as it will “exponentially expand” its home broadband business from the current subscriber base of 2 million to 4.4 million.
“The fibre optics cable network will have a wider reach towards an upcountry market that has a lower broadband penetration rate compared to urban areas. With the integrated services, we will have opportunities to cross-sell and up-sell varieties of products and services to the customers. The expanded revenue will help create additional value and improve long-term cash flow for the company,” reads the statements by AIS.
As a result of the disproval from JASIF’s unitholders to waive or amend the provision related to the rental agreement, the rental contract will end at the beginning of 2032. This is as the contract renewal will require a “material change” to the existing terms and conditions to support the future competitiveness of the business.
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“The company will also compare with other viable options to ensure the appropriate operating cost over the long run,” says AIS. “In addition, the company foresees the importance of expanding the digital infrastructure and therefore has the policy to consider telecommunication asset monetization with options that bring more diverse sources of funds and effective cost of capital.”
Further to its statement, AIS said that it will attain transaction approval from the National Broadcasting and Telecommunications Commission (NBTC) before signing the share purchase agreement and executing the transaction.
The company expects the share purchase and acquisition of investment units to be completed within the first quarter of 2023.
Shares in Singtel closed at $2.78 on Nov 15.
