Yahoo Finance Singtel associate AIS not obliged to make $1.17 bil payment to National Telecom
Shares in Singtel closed 2 cents higher or 0.77% up at $2.63 on July 26.
Advanced Info Service Public Company (AIS), the Thai associate of SGX-listed Singapore Telecommunications (Singtel), is no longer obliged to make payment to National Telecom Public Company (NT) on claims made by the latter.
This comes after the Central Administrative Court resolved to revoke the arbitral tribunal’s order on the ground that amendments no.6 & 7 was binding on July 26.
Amendments no.6 & 7 refer to the reduction of revenue share in prepaid service and the deduction of roaming expenses to the cellular mobile telephone service agreement.
NT was previously known as the Telephone Organization of Thailand (TOT) Public Company.
On Jan 29, 2020, AIS was asked by the arbitral tribunal to pay NT a sum of 31.08 billion baht ($1.17 billion) plus interest.
Both companies had submitted a dispute to the Arbitration Institute in 2015 where NT claimed an additional payment of 62.77 billion baht on amendments no.6 &7.
At the time, NT made the claim that both amendments were not binding. As such, the company received lower revenue compared to the main service agreement.
While AIS is currently not obliged to pay NT, the latter still has the right to file an appeal with the Supreme Administrative Court within 30 days.
Shares in Singtel closed 2 cents higher or 0.77% up at $2.63 on July 26.
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