Norwegian state-owned telecoms company Telenor has sold its 30 percent stake in Thailand telecoms company True Corporation to digital service provider Arise Digital Technology for NOK 39 billion ($3.9 billion).

Arise is owned by Khun Suphachai Chearavanont, who has stepped down from a role as CEO of Charoen Pokphand Group, Thailand’s largest private company, to focus on Arise following the deal.

True is a joint venture between Charoen Pokphand and Telenor, which was formed by the merger between the original True Corporation and DTAC.

True has a number of subsidiaries, including True Digital and True Internet Data Center (IDC). True Digital is described as promoting the adoption of digital transformation across industries and developing Thailand’s digital infrastructure.

Last year, Microsoft partnered with Charoen Pokphand and True Corporation for its Thailand cloud region, with True IDC serving as a key data center partner.

Arise’s parent company, Arise Venture Group, has investments in data centers, digital infrastructure, cloud computing, and artificial intelligence.

Under the terms of the agreement, Telenor will sell 24.95 percent of the shares at THB 11.70 ($0.37). The remaining 5.35 percent of the shares will be sold in an agreed mutual put/call option two years after the closing of the initial sale, at the higher of THB 11.70 per share and the market price prior to the term of the option.

Telenor said that proceeds from the sale would be $3.2 billion, with proceeds from exercising the option after two years to be $698 billion. The company said it would recognize an accounting gain of approximately $1.4 billion at the closing of the initial sale.

“We are pleased to have reached an agreement with Arise about the sale of our stake in True, and I would also like to extend a special thanks to True’s employees and customers. We are confident that the engaged people in True will continue to grow and innovate for its around 60 million customers,” says Benedicte Schilbred Fasmer, CEO of Telenor.

Chearavanont said: “We are committed to sustaining our positive momentum, delivering profitable growth and value creation in True in the years ahead. We appreciate the close cooperation we’ve had with Telenor in signing the definitive agreements.”