TOT to offload all shares in dormant JVs as part of revamp

[webfact]

TOT
TOT to offload all shares in dormant JVs as part of revamp
Usanee Mongkolporn
The Nation



BANGKOK: -- TOT is streamlining its organisation and will divest all of its shares in 11 joint ventures as part of its restructuring plan to improve efficiency and performance and focus on its core businesses.

TOT is expected to gain around Bt15.254 billion from the divestment plan. Eleven of TOT's 14 joint-venture companies are hardly active businesses, with the major exceptions of Total Access Communication (DTAC) and Internet Thailand (Inet).

TOT chairman General Surapong Suwana-adth said TOT was considering selling off the JV companies step by step to focus on the core businesses. These include telecom infrastructure, telecommunications towers, international gateways and submarine cables, mobile phone service, fixed telephone and broadband Internet, and information-technology services.

Thanwa Laohasiriwong , the agency's acting president, said the plan was also part of the policy of the State Enterprises Policy Commission or "superboard" to turn around the fortunes of TOT.

"As a national telecom operator, we need to continue to invest in telecom infrastructure, so we have to convert the shares into cash for investment. But we will sell the shares at the appropriate price," Thanwa said.

Most of the TOT shares in the 11 companies were acquired in the past 10 years as TOT was a monopoly telecom-infrastructure operator. Most deals came from transmission-link deals, including the DTAC shares.

However, TOT has to submit the divestment plan to the Cabinet for approval.

The other joint-venture businesses are TOT Outsourcing Services, TOT Sport Club, and Clearing House for Number Portability. These active businesses need to adjust their operational processes for better efficiency.

Yesterday, TOT announced a new "matrix organisation" chart as part of its rehabilitation plan to strengthen the operation and reduce losses.

Under the new structure, there will be seven operational and support departments - down from 13 departments earlier - which will all support the core business operations, sales and customer services.

Six of 13 existing senior executive vice presidents will be assigned as heads of each department, while the rest will be moved to oversee the six core businesses. The new structure came into effect on Tuesday with a 60-day transition period.

The TOT chairman and board members had to meet with employees yesterday morning to explain the new structure and to tone down opposition to this change. Surapong also asked for collaboration from TOT employees. He said the restructuring plan would help TOT survive in the industry and show better financial results by next year.

This year, TOT expects revenue of Bt32 billion and a net loss of Bt4.5 billion, lower than the loss of Bt7.8 billion forecast earlier, after it slashed operational costs.

Surapong said the board got strong support from TOT executives during the three-month period.

Meanwhile, TOT is in talks with possible strategic partners, including local telecom operators and foreign companies. Thanwa said the agency might extend the time frame to look at proposals from strategic partners from next month to early next year.

The state agency has contacted Advanced Info Service, DTAC, True Corp, Samart Corp, Loxley and some foreign operators, proposing possible business partnerships.

Source: http://www.nationmultimedia.com/business/TOT-to-offload-all-shares-in-dormant-JVs-as-part-o-30248144.html


-- The Nation 2014-11-20

[smedly]

be interesting to see a breakdown of ownership of the big losers in that list, knowing Thailand as I do I suspect it would make very interesting reading

[casualbiker]

TOT management couldn't find their own cocks even if they were holding them!

They had total control of 3G 2100mhz 2 years before anyone else and blew it. Useless!!!

Edited November 20, 2014 by casualbiker

[Chris Lawrence]

Maybe they need to sell off the farm? as the big boys not sure on how to spend money?

[rametindallas]

I'm curious how this government entity, that is supposed to represent the interests of Thai citizens, could stay unbiased when they had financial stakes in companies they were regulating.

[rickirs]

There are 13 existing senior executive vice presidents in 11 joint ventures and none will be laid off as a result of the sell-off even though 9 joint ventures are hardly active. How is that streamlining TOT business?

[mikebell]

I wish they would streamline my internet access.