http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSBKK50684220090824
Reuters, 24 Aug 2009
Thai Shin says Temasek stake sale depends on market
BANGKOK, Aug 24 (Reuters) - A
plan by Singapore's Temasek Holdings [TEM.UL] to sell its stake in
Thailand's leading telecoms group, Shin Corp SHIN.BK, will depend on
market conditions, an official at the Thai firm said on Monday.
The plan is followed closely by investors as it is likely to increase
the volume of Shin shares trading in the market. Some analysts see the
stock as a good proxy for Thailand's telecoms industry but say the low
free float is a trading risk.
"Our major shareholder has a policy to dilute its stake, but timing
will depend on the economic situation and market conditions," Tomyantee
Kongpoolsilpa, a senior manager for investor relations at Shin, told
reporters.
Shin was founded by former Prime Minister Thaksin Shinawatra and control was sold to Temasek by his family in 2006.
Shin's free float dropped to under 4 percent, below the 15 percent
threshold required by the Stock Exchange of Thailand, following
Temasek's $3.8 billion takeover.
Under a
complicated structure, Shin is 96.12 percent owned by two
Thai-registered companies, Cedar Holdings and Aspen Holdings. Aspen is
owned directly by a Temasek subsidiary, while Cedar is 49 percent owned
by Temasek.
The Singapore state investment firm had planned to dilute its holding
in Shin Corp to 49 percent, but the plan is on hold pending a probe
into whether the takeover broke laws limiting foreign ownership of Thai
firms to 49 percent.
Kim Eng Securities said in a note that the Shin shares looked
interesting because of third-generation mobile phone licences to be
issued to its 43 percent owned Advanced Info Service (AIS) ADVA.BK and
the progress of the IPSTAR satellite business run by its 41 percent
owned Thaicom THCOM.BK.
Shares in Shin, valued at $2.1 billion on the Thai bourse, ended
0.9 percent higher at 23.00 baht after touching a 12-month high of
23.30 baht earlier. The overall Thai stock market was 1.3 percent
higher.
The current value of Shin shares is under half the price Temasek paid, 49.25 baht, in January 2006.
Shin groups more than 20 companies in the wireless, satellite,
Internet and media sectors, with AIS, Thailand's largest mobile phone
operator, contributing more than 80 percent of its profit. ($1 = 34.00
Baht) (Reporting by Pisit Changplayngam; Writing by Khettiya Jittapong;
Editing by Alan Raybould)
-------------------------
Latest on Singapore News Alternative:
1. Singapore demand and phony contracts sustain booming Mekong sand exports
2. Thai Shin says Temasek stake sale depends on market
3. No 'three Strikes' Law Planned for Singapore, Agency Says
4. Singapore Defence report: defence spending will amount to US$11.4bn, or 6% of GDP, in 2009
5. Singapore electricity generation is forecast to increase by 38.5% during the period 2008 to 2018
6. Indonesia police dismiss Obama plot report
7. Singapore Consumer Prices Fall Fourth Month in a Row
8. Temasek Sold Off Stakes In Vical and Equinix
9. Singapore Tourism Market in decline
10. Indonesia falling prey to Singapore's tactical strategy
.