(Aug 3): China Mobile Ltd is considering selling its minority stake in Thailand’s telecommunications company True Corp, according to people familiar with the situation.

The Chinese mobile and internet firm is working with an adviser to sound out initial interest from prospective buyers in its stake in True, the people said, asking not to be identified discussing a private matter.

True shares fell as much as 4.9% in Bangkok, the biggest intraday drop in more than a month, before paring some losses. The stock has gained 28% this year, giving the company a market value of about US$14.5 billion (RM59.2 billion). At that level, China Mobile’s holding would be worth about US$1.1 billion.

China Mobile has roughly a 7.8% stake in True, according to the Thai group’s latest annual report.

Deliberations are ongoing and may not lead to a transaction, the people said. A representative for China Mobile didn’t immediately respond to requests seeking comment.

Naureen Quayum, head of investor relations at True, said China Mobile has told the company it intends to be a long-term shareholder of the Thai carrier and has no intention of exiting its position.

True merged with the Thai unit of Norway’s Telenor ASA in 2023. Earlier this year, Telenor agreed to sell its stake in True to Arise Digital Technology Co for a total value of US$3.9 billion.

True has more than 48 million mobile subscribers and also operates home broadband and cable television.

China Mobile is the world’s largest wireless carrier by subscribers and the country’s primary provider of mobile, internet, and digital infrastructure services. The state-owned telecommunications giant has about one billion mobile subscribers and hundreds of millions of broadband users.

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