LTC, ETL stock market listing still in doubt
LTC, ETL stock market listing still in doubt
Details of a government plan to list Lao Telecom Company (LTC), a Lao-Thai joint venture, on the Lao Securities Exchange may become clearer early next year.
Thaicom holds a 49 percent share in Lao Telecom, which is one of the largest telecom operators in Laos. Last week the Thai firm announced it was conducting a feasibility study on listing the joint venture on both the Stock Exchange of Thailand and the Lao Securities Exchange on a dual listing basis.
The plan to list LTC on the two stock markets will become clearer in the first half of next year, Thaicom chief executive office Mr Suphajee said as quoted in The Nation. The satellite operation is consulting with the Lao government, which holds a 51 percent share in LTC, before making the final decision.
According to Thaicom, as at the end of the third quarter this year, LTC had 1.2 million phone subscribers. Competition in the telecom market is high in Laos, with the existence of four mobile network operators. ETL, Unitel and Beeline operate networks in addition to LTC.
But despite the strong competition, LTC has been able to maintain a leading position in the Lao telecoms industry.
According to a senior official from the Lao Securities Exchange, the Lao government would merge its 51 percent share in LTC with ETL, which is fully state-owned, before listing both companies on the stock market.
The government is considering merging LTC, which holds a large share of the cell phone market in Laos, with ETL, in a move aimed at convincing more people to buy shares. The government believes that not many people would buy ETL shares due to the strong competition in the industry.
The government had originally planned to list ETL on the stock market at the end of last year, but postponed the listing several times due to the unfavourable business climate.
ETL Director Mr Khammuan Xomsiphanya said fierce competition in the industry had posed a major challenge for ETL in its plan to sell 30 percent of the government's share in the enterprise to public investors and list on the Lao stock market.
He said government officials had discussed the possibility of a merger with ETL, with the government to hold a 51 percent share with an overseas investor. This would create more favourable conditions for telecom operators to compete in the market.
“I cannot give an answer about whether these two companies will merge as reported, because it is up to the government,” Mr Khammuan said.
LTC Deputy Director Mr Phoukhong Chithoublok said he was aware of the discussions about the merger so that listing could ahead. However, he did not think any conclusion would soon be forthcoming.
“The government has not made it clear whether the two companies should merge so we have no plan to list on the stock market.”
vientiane times
