CP Group to Offload 10% Stake in True Corp. to UBS in Major Capital Reallocation Move

CP Group has initiated the sale of a 10% equity stake in True Corp., one of Thailand’s largest telecom firms, as part of a broader capital optimization strategy. The transaction, finalized through a private placement, positions UBS as the principal buyer, acquiring the shares at a price reflecting a 12% premium to True Corp.’s 30-day volume-weighted average price as of early February 2026. The deal values the entire stake at approximately THB 17.8 billion ($510 million), based on True Corp.’s closing share price of THB 225 on February 26, 2026. This move follows CP Group’s recent reassessment of its non-core holdings, particularly in the telecom sector. While CP Group remains a significant shareholder in True Corp. with a remaining 52% ownership, the divestment signals a deliberate reduction in exposure to capital-intensive infrastructure assets. The proceeds will be reinvested into CP Group’s core operations, including food processing, retail, and logistics, as part of a long-term plan to enhance operational efficiency and shareholder returns. True Corp.’s stock reacted positively to the announcement, rising 4.1% in early trading on February 27, 2026, reflecting investor confidence in the company’s stability and UBS’s strategic interest. The institutional backing from UBS, known for its strong Asian equity research and asset management capabilities, is expected to support liquidity and market visibility for True Corp. in the coming quarters. The transaction also underscores growing investor appetite for well-established Thai telecom assets, particularly those with stable cash flows and digital infrastructure exposure. With UBS now holding a 10% stake, the firm may play a more active role in governance and long-term strategy discussions, potentially influencing future capital allocation and international expansion initiatives at True Corp.