Norwegian telecommunications group Telenor has exited the Thai market after more than 25 years, following the sale of its entire 30.3% stake in True Corporation, a move that could eventually pave the way for a divestment of its remaining Asian assets, including Malaysia’s CelcomDigi.
On Jan 22, Telenor announced that it had signed an agreement to sell its stake in True Corp to Arise Digital Technology Co Ltd, a company owned by Thai tycoon Suphachai Chearavanont, for US$3.9 billion (RM15.7 billion). The transaction marks Telenor’s full exit from Thailand, where it first invested in Total Access Communication (DTAC) in the late 1990s.
The sale of True is Telenor’s second major divestment in Asia in two years, following the disposal of its Pakistan operations at the end of 2025. With the Thai exit, Telenor’s Asian footprint is now limited to two markets — Malaysia, through its 33.1% stake in CelcomDigi Bhd (CDB), and Bangladesh, where it owns 55.8% of Grameenphone.
Potential exit from CelcomDigi
According to CIMB Securities, Telenor’s strategic direction suggests that a future exit from CelcomDigi is increasingly plausible. The group has previously stated its intention to simplify its corporate structure and refocus on its core Nordic markets.
Following the True divestment, Telenor said it would concentrate on maximising value at its remaining assets in Malaysia and Bangladesh, while remaining open to “structural opportunities” over time. CIMB believes this signals that a sale of its CelcomDigi stake could materialise if valuations are attractive.
While the timing of such a move remains uncertain, CIMB noted that the integration of Celcom and Digi is expected to be largely completed by the first half of 2027. As such, a potential exit window could emerge in 2027–2028, once the merged entity’s earnings and valuation fully reflect merger synergies.
Market impact likely more muted than in Thailand
CIMB Securities cautioned that any announcement of a Telenor stake sale in CelcomDigi could initially weigh on investor sentiment, given concerns over the loss of a strategic shareholder with deep industry expertise, board representation and procurement scale benefits.
However, the brokerage expects any share price reaction to be less severe than the sharp 15% decline seen in True’s share price on Jan 22. This is because Telenor is perceived to play a more central operational role in True than it does in CelcomDigi.
In Malaysia, CelcomDigi’s management team has been largely localised over the years, which should limit operational disruption in the event of a shareholder change. Moreover, a sale of Telenor’s 33.1% stake could trigger a mandatory general offer (MGO), depending on the structure of the transaction. Such an outcome could provide downside support — or even upside — to CelcomDigi’s share price, depending on the offer price.
For now, CIMB views Telenor’s exit from Thailand as a significant milestone that reinforces its broader strategic retreat from Asia, with Malaysia potentially next in line over the medium term.
