Two SET-listed companies, Ratchaburi Electricity Generating Holding Plc (Ratch) and ALT Telecom Plc, have entered into a shareholders agreement for participation in an underground fibre-optic network project supported by the government.
They plan to establish a joint venture company in Thailand, according to conditions specified in the shareholders agreement, which is expected to be completed by April, said letters from both companies to the Stock Exchange of Thailand.
Registered capital for the new company is projected at 1 million baht, divided into 100,000 ordinary shares valued at 10 baht each.
Ratch chief executive Kijja Sripatthangkura said ALT will hold a 51% stake, with Ratch owning the remainder.
"The investment is for installation of a fibre-optic network and related equipment, subject to the government's communication cables relocation project," said Mr Kijja.
"This includes wiring communication cables through underground conduits, or by other methods that would promote a tidy, beautiful and safe landscape."
The joint venture can invest in other related business as well, he said.
Both Ratch and ALT expect returns on investment from the project, which aligns with both companies' strategy to expand to other types of business.
State-run Electricity Generating Authority of Thailand owns a 45% stake in Ratch.
ALT is a comprehensive telecom provider and its business units are divided into three segments: providing service for base station construction, installation and repair of telecom equipment; distribution of telecom products such as fibre-optic cable, telecom shelters, rapid deployment, antennas and other equipment; and leasing of telecom infrastructure.
