True Corporation’s share price tumbled up to 13% on the Thai bourse following Telenor’s decision to transfer a significant stake. Despite investor concerns over changes in ownership and management, analysts maintain that the selloff is an overreaction, as TRUE’s fundamentals and prospects remain solid.
Shares of True Corporation Public Company Limited (SET: TRUE) came under intense selling pressure on Thursday afternoon, with the share price plunging as much as 13% to THB 10.80 per share despite earlier gains in the morning session. The sharp decline sent a ripple effect throughout Thailand’s stock market, particularly impacting the telecom sector and pushing the SET Index 0.66% lower at 1,308.91 points in afternoon trade.
The selloff followed an announcement that Telenor, a major international telecommunications group, had reached an agreement to transfer 24.95% of its 30.3% stake in TRUE to Arise Digital Technology, a company controlled by Mr. Suphachai Chearavanont, CEO of Charoen Pokphand (CP) Group. After this transaction, the Chearavanont family’s total effective holding in TRUE will rise to 55.3%, consolidating its control over the company.
Telenor priced the transaction at THB 11.70 per share—a 5.6% discount from the previous day’s closing price, yet notably higher than the heavily discounted levels seen in today’s trading. The market reaction appears to be driven by concerns over potential changes in TRUE’s management structure, with Telenor’s directors set to leave the board.
Importantly, Sigve Brekke, who joined TRUE from Telenor in 2025 and is now Group Chief Executive Officer, will remain in his leadership role. Sigve Brekke’s stewardship has been instrumental in driving TRUE’s turnaround, with the company posting significantly improved results since his appointment.
It is important to highlight that Telenor’s withdrawal from the region is not unexpected. The telecom giant had already announced plans to reduce its presence in various Asian markets, and similar moves have preceded the current divestment in TRUE.
Kasikorn Securities noted that the sharp decline in TRUE’s stock price this afternoon has pushed the share price slightly below the transaction price—currently trading at around 11 baht, which is approximately 6% less than the deal price. The brokerage believes the negative market reaction is excessive, particularly relative to shifts in the balance of shareholder powers. At THB 11 per share, TRUE trades at just 6.99x expected 2026 EV/EBITDA and offers an attractive estimated dividend yield of 3.78% for the year. Kasikorn reiterated its ‘Outperform’ rating on TRUE with a target price of THB 14.12 per share.
According to LSEG consensus, the outlook for TRUE remains positive, with analysts’ average target price at THB 15.15 per share. The consensus comprises 15 ‘Buy’ ratings, 1 ‘Hold’, and zero ‘Sell’ recommendations, underlining strong analyst support for the stock.
While today’s volatility may have unnerved some investors, analysts recommend focusing on TRUE’s sound fundamentals, resilient management, and the continuing confidence among major stakeholders. As the dust settles, the current share price could offer an attractive entry point for long-term investors.
