Fund taking shape
IT: Jasmine International Plc’s board has approved the setting up of a 70-billion-baht infrastructure fund for the company’s broadband assets.
The company can now prepare to sell assets to the fund, which is in the process of registering with the Securities and Exchange Commission.
Under the planned structure, the 99%-owned subsidiary Triple T Broadband Plc, which holds a network operator (Type 3) licence, will sell its assets to the fund.
The fund will in turn rent the assets back to Triple T under a renewable seven-year operating lease contract. The company is willing to renew the contract twice for a total of 21 years.
Jasmine will hold 33.33% in the fund.
The proceeds will be used to expand its broadband network, especially the FTTX service, which uses optical fibre to provide all or part of the local loop used for lastmile telecommunications.
It expects FTTX customers will make up half of all customers in three years.
Shares of JAS closed on the Stock Exchange of Thailand at 8.35 baht yesterday, down 15 satang, in trade worth 952.15 million baht.