Tt&t Awarded 24 Billion Baht

[Edonista]

Today the SET site displayed these news:

Re: Notification of the Arbitration Award for the Case against TOT PLC

TT&T Public Company Limited (“the Company”) would like to report that on March

31, 2008, the arbitrator panel rendered an award to the Company in the Red Case

Index No. 18/2551 (Black Case Index No. 30/2548) for the amount of Baht

23,777,993,986. With respect to the award, TOT Public Company Limited (“TOT”)

shall pay such amount including interest to the Company for utilizing the special

service through the Company’s network pursuant to the Joint Operate and Joint

Investment Agreement for Provincial Telephone Expansion Project between TOT and

the Company (“Concession Agreement”), up to the date the awarded was rendered.

In addition, TOT shall pay the remuneration for such utilizing to the Company from

April 1, 2005 until the end of the Concession Agreement.

The Company received such award ruling from the Thai Arbitration Institute, the

Alternative Dispute Resolution Office, the Office of Judiciary on April 4, 2008.

I wonder if such arbitrate is definitive or if we can expect TOT to appeal.

24 billion baht equals to 7.5 baht per share, share quoting 1.19 by now.

[Edonista]

http://www.bangkokpost.com/Business/09Apr2008_biz30.php

Panel orders TOT to pay B24bn to TT&T[/color][/b]

KOMSAN TORTERMVASANA

TT&T Plc, the provincial fixed-line operator, has won an arbitration award totalling 23.79 billion baht in a dispute with the state telecom enterprise TOT, which owns TT&T's concession.

The news sent TT&T shares up by the maximum 30% yesterday on the SET. They closed at 1.20 baht in heavy trade worth 459.63 million baht.

Arbitrators ruled last Friday that TOT had operated extra services and collected revenues from private operators using the TT&T network.

Please see the Bangkok Post for the rest of the article

[Edonista]

TELECOMMUNICATIONS

Ruling improves prospects for TT&T

SRISAMORN PHOOSUPHANUSORN

TT&T Plc, the provincial fixed-line telephone provider, says it is now ready to move forward aggressively with business expansion after winning a large arbitration award in a dispute with its state concession provider, TOT Plc.

An arbitration panel earlier this month awarded TT&T 23.79 billion baht after finding that TOT had used the TT&T fixed-line network to provide services to other cellular operators and offered no revenues to the private operator.

However, the state telecom enterprise said it would appeal the ruling to the Administrative Court as the large amount would affect its financial status.

© Copyright The Post Publishing Public Co., Ltd. 2006

Privacy Policy

[sbk]

Published on April 9, 2008

The stock hit an intra-day peak of Bt1.23 after an arbitration panel awarded the company a Bt24.8-billion payment from state-owned telephone-network operator TOT.

Trading in shares of Thailand's second-biggest private fixed-line operator was buoyant for the entire day. At market close yesterday, the stock stood at Bt1.20, a 30.43-per-cent rise.

The Thai Arbitration Institute ruled payment must be made for TT&T's provision of a "special service" for TOT through its network, the company said in a statement to the Stock Exchange of Thailand (SET) yesterday.

TT&T has been dogged by net losses for several years. SET data show the company posted a net loss of Bt232.73 million in 2004. This widened to Bt1.75 billion in 2005, narrowing to Bt1.08 billion in 2006.

The company posted a net loss of Bt2.03 billion last year.

The arbitration panel has ruled that TOT has to pay the firm Bt23.777 billion, plus interest for using a special service through TT&T's network. TOT is required to pay the charges from April 1, 2005 until the end of the concession agreement in 2018.

The Nation