China Mobile explores US$1.1b stake sale in Thai telecom True, Bloomberg reports

China Mobile (0941) is working with advisers to gauge preliminary buyer interest for a potential sale of its minority stake in Thai telecommunications firm True Corp, Bloomberg reported, citing people familiar with the matter.

The Chinese carrier holds an approximately 7.8 percent stake in the Thai operator, which is valued at roughly US$1.1 billion (HK$8.63 billion)  based on True's latest annual report. This comes as True's shares surged 30 percent in Bangkok this year, boosting its market capitalization to US$14.7 billion, according to Bloomberg.

However, sources told Bloomberg that discussions are still ongoing and may not ultimately result in a transaction. Representatives for both China Mobile and True did not immediately respond to requests for comment.

A potential divestment would follow True's 2023 merger with the local subsidiary of Norwegian telecom giant Telenor ASA, the report noted. Earlier this year, Telenor agreed to offload its own shares in True to Arise Digital Technology Co for US$3.9 billion.

True operates home broadband and cable television businesses alongside its base of over 48 million mobile users.

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