Oct 17, 2006
Shin Corp deal: Temasek complied with Thai laws
REFER to the letter, 'Did Temasek take unnecessary risk?' (ST, Oct
14).
As a long-term international investor, Temasek complies fully with
the laws and regulations in the different jurisdictions we invest
in.
Our investment in Shin Corp in Thailand is no different. It was
based on commercial principles and was consistent with best
practices in international mergers and acquisitions.
Following advice from our legal and financial advisers, the
consortium, which included Thai co-investors, completed its
purchase and General Tender Offer in accordance with market
practices and in compliance with the laws and regulations of
Thailand, including guidelines imposed by the Securities and
Exchange Commission.
Our investment in Shin Corp was not predicated on which government
was in power. Temasek is investing for the long term, and therefore
factors possible changes in government in our investment
considerations.
In March, almost all of the remaining shares were tendered to the
consortium at the close of the General Tender Offer. Post the
tender offer, the consortium owns 96 per cent of Shin Corp. This
was far beyond anyone's expectations.
The consortium has said that it would like to keep Shin Corp listed
on the Stock Exchange of Thailand. This means that we would like to
reduce our shareholding in Shin Corp at the appropriate time and in
an appropriate manner for orderly market conduct.
This intention remains unchanged. Indeed, Temasek believes it is
good for listed companies to have a healthy float of retail public
and strong institutional shareholders.
As an investment house anchored in Asia, we are convinced that it
makes sense for us to re-invest in Asia to grow together. We look
forward to playing a constructive role as a responsible long-term
investor in the various communities in the region.
Myrna Thomas (Ms)
Managing Director
Corporate Affairs
Temasek Holdings
ST Forum 17 Oct 2006
