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)
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