Telecom firms Total Access Communication Plc (DTAC) and True Corporation Plc have agreed to merge, to pursue new tech business and raise venture capital for startups.

The merger plan was approved by their respective executive boards on Friday and their decisions forwarded to the Stock Exchange of Thailand on Monday.

The two companies on Monday also signed a memorandum of understanding for an equal partnership to form a new merged firm to pursue tech business.

They said in their advice to the SET they will “explore the feasibility of, and carry out required steps to implement, the potential amalgamation” of the two listed companies.

The two companies had entered into a non-binding memorandum of understanding to study combining their businesses by way of an amalgamation.

They agreed to a swap ratio of one existing share in DTAC to 24.5 shares in the new firm,  and one share in True to 2.4 shares.

They indicated the new company will apply to be listed on the SET.

More details at Bangkok Post