The share price of True Corporation dropped 6% to THB10.80 per share in the morning session on Wednesday following the report of the Supreme Administrative Court dismissing the company’s request for revocation of the arbitration award in relation to the dispute with National Telecom about the “TA 1234” campaign.
True Corporation Public Company Limited (SET: TRUE) disclosed information through the Stock Exchange of Thailand, stating that the company had filed the petition with the Administrative Court requesting for revocation of the arbitration award in relation to the dispute where TOT Public Company Limited (“TOT”) (presently, National Telecom Public Company Limited) filed an arbitration claim for damages from the loss of income during the period from 16 November 2000 to June 2005 on the ground that the Company reduced domestic long distance calling fees under the Company’s “TA 1234” campaign, details of which have been disclosed in the Company’s Annual Report 2023 (Form 56-1 One Report).
In this regard, the Company would like to report material progress of the case that, on 17 December 2024, the Central Administrative Court read the Supreme Administrative Court’s order to dismiss the Company’s appeal. The Company shall file a Request for a New Trial within 90 days in accordance with the relevant law.
In addition to this case, the case in which TOT has filed a petition to enforce the arbitration award is still under consideration by the Supreme Administrative Court. Therefore, the Supreme Administrative Court’s order dismissing the petition to revoke the arbitration award does not require the company to make any payment to TOT.
Kasikorn Securities (KS) viewed this as a slight negative impact to TRUE as the implication of a possible payment may not be much and will take time to reach the final verdict. The firm maintained ‘Hold’ recommendation at a target price of THB12.10 per share.
