Thailand Demands Telecom, Satellites Back From Singapore

[george]

Thailand demands telecom, satellites back from Singapore

BANGKOK: -- Thailand's coup leader, Sonthi Boonyaratglin, says he wants to reverse the sale of the telecommunications giant founded by ousted prime minister, Thaksin Shinawatra.

Singapore state investment firm Temasek purchased Mr Thaksin's family owned company, Shin Corp, for $US3.8 billion last year.

However, in a speech, General Sonthi has said it is the Thai army's duty not to let anybody to take their national assets.

"National assets, no matter where they are located, always belong to Thailand and the Thai people," he said.

"Do you want me to sit idly? My duty is to salvage the country and its assets.

"I want my belongings back."

Temasek's takeover of Shin Corp has given it control of Thailand's largest mobile phone firm, with a 45 per cent share of the market.

General says secrets go to Singapore

Temasek also got control of Shin Satellite, Thailand's only satellite firm, which immediately drew criticism that Mr Thaksin's family had sold out national security.

General Sonthi last month suggested Thai military phone calls were being monitored in Singapore, after it took over Shin Corp.

"Our army has a problem now," he said.

"When we make a call, the line goes to Singapore.

"When we talk secrets, they go straight to Singapore."

Temasek and Shin Satellite have denied that they have ever eavesdropped on customer communications.

The general has not said how he planned to get the firm's assets back, but says he is working hard on the problem.

General Sonthi led a bloodless coup against Mr Thaksin in September last year, accusing him of rampant corruption and abuse of power.

--Radio Australia 2007-02-16

[george]

Thailand's Sondhi Wants Assets Back From Singapore

BANGKOK: -- -- Thailand's Army chief said he wants to take back about 140 billion baht ($3.9 billion) of assets from Singapore, escalating a diplomatic spat between the Southeast Asian nations.

``Singapore is a very small country, but it is so rich that it can buy 140 billion baht of our national assets,'' said Sondhi Boonyarataklin, who led a September coup that toppled the government of Thaksin Shinawatra. ``I am thinking about whether we can take those assets back. I want our national assets back, especially the satellites.''

Singapore's state-owned Temasek Holdings Pte last year bought a controlling stake in Thailand's biggest mobile-phone company and its only satellite operator from investors including Thasksin's family. The deal exacerbated protests and a political stalemate in Thailand that led to Thaksin's ouster.

``I thought things had calmed down on the subject, but this does suggest that maybe things took a turn for the worse,'' said David Cohen, a Singapore-based economist at Action Economics. ``It is difficult to anticipate which direction the politics in Thailand would go right now. There are uncertainties there.''

Temasek and Singapore's Ministry of Foreign Affairs declined to comment in separate e-mailed statements.

Recouping Assets

Temasek gained control of phone company Advanced Info Service Pcl and Shin Satellite Pcl when it led a group of investors in acquiring Shin Corp., the holding company founded by Thaksin.

Rachadawan Sanitwong Na Ayuttaya, Shin's spokeswoman, also declined to comment.

Sondhi's speech, at the Royal Army Convention in Bangkok, was broadcast today by army radio.

``I don't know how to get those assets back, but that's my wish,'' Sondhi said. ``We have to see whether we can bring those assets back. As a soldier, I need to recoup those assets.''

Sansern Kaewkamnerd, spokesman for the National Security Council, which consists of Sondhi and other junta leaders, confirmed Sondhi's comments.

``It has been his wish to bring back any assets that are key to national security,'' said Sansern. ``Satellites are a very important asset.''

Shin also controls ITV Pcl, the nation's only television network operator not owned by the government or military, and CS Loxinfo Pcl, an Internet company.

Sondhi last month accused Singapore of using its Thai assets to listen to the military's phone calls. Advanced Info and Shin Satellite denied the claim, saying it's not technically possible.

Complex Dynamics

``The current state of our relations with Thailand has its basis in the complex dynamics of Thai domestic politics since the coup,'' Singapore Foreign Affairs Minister George Yeo said in a speech in Parliament on Feb. 12. ``We have to take the current unpleasantness in our stride.''

Thailand's commerce ministry asked police in October to investigate the takeover of Shin, and new watchdogs have been set up to probe other suspected breaches of foreign ownership rules, including the practice of overseas partners funding local nominee companies in the kingdom.

The purchase of Shin was ``completely above board and can withstand any investigation,'' Singapore's Minister Mentor Lee Kuan Yew, who was the city-state's prime minister from 1959 to 1990, said on Nov. 3. ``Nobody doubts that, nobody within the system doubts that. People who man the system are completely, absolutely above board.''

Temasek directly owns 41.7 percent of Shin, while a group of investors, including Temasek units, holds 54.6 percent, Jimmy Phoon, Temasek's chief investment officer, said Sept. 29.

ITV's Fines

Thailand's government is also seeking about 100 billion baht from ITV. The broadcaster has been given a 30-day deadline to pay back fees and fines or risk having its broadcast license revoked, the government said on Jan. 30. ITV Chairman Niwattumrong Boonsongpaisan has said the company won't be able to pay.

Thaksin's family last year sold its entire 49.6 percent stake in Shin Corp. for $1.9 billion tax free to investors led by Temasek. The Temasek-led group increased its stake in Shin to more than 96 percent through a tender offer.

--Bloomberg.com 2007-02-16

[cdnvic]

And is Singapore says (and they will say) no.... then what?

[cclub75]

And is Singapore says (and they will say) no.... then what?

A war ?

Basically, it could be the bigger heist ever.

Thailand could buy back. With a huge margin for Temasek. And then, "we share" (between Thaksin, Temasek and the generals).

The coup... The ousting of Thaksin... everything was part of this heist.

Am I going to far ?

More seriously, the speech of Sonthi is really scary... And his insane speech is now reported by Bloomberg...

Edited February 16, 2007 by cclub75

[cdnvic]

And is Singapore says (and they will say) no.... then what?

A war ?

Never. It's all just bluster as per usual.

[ovenman]

And is Singapore says (and they will say) no.... then what?

I suppose that nationalizing the assets is always an option but the powers-that-be should think very hard about the potential fallout from that action before considering such an extreme measure.

[hammered]

Nationalist rhetoric against Singapore will go down well with those upset by Thaksin's sale or by the controversial football defeat to Singapore. Those groups cover a lot of the population.

[LaoPo]

If all the countries in the world are demanding back 'their' communications/satellite 'assets' they will be busy...

"Vodafone has bought a controlling stake (67% LP) in Indian mobile phone firm Hutchison Essar for $11.1bn (£5.7bn)." Feb 11th, 2007 - BBC business news.

Antique behaviour of the military.......like one child to the other: "I want my toy back".....

If they want to act like business people they should hire KKR/USA* to start preparing a bid on Temasek holding; now that would be something....

* http://www.kkr.com/

LaoPo

Edited February 16, 2007 by LaoPo

[twix38]

If Temasek's takeover was legal and met all required sale stipulations of the law at the time, then Thailand will just have to wear it or offer a fair market price and ask for good faith.

There is enough corruption and cheating in Thailand, that if this asset was legally sold and bought, then tough 5hit.

I do not see this coup government turning out good for Thailand or being willing to let go when it really comes down to it. I fully expect the interim government will NOT be replaced by a demorcratic one that anywhere near meets a normal international definition of democracy.

[cdnvic]

My guess is that a little horse trading occurs and something that saves face for all sides will be worked out. They'll thump their chests for a little while yet though.

[Bangkokbob]

If is easy for Thailand to get its assets back. Since all profits are derived from Thailand, all they have to do is tax all monies from telecom businesses that leave Thailand at a 50% or higher rate. Singapore would be more than willing to sell the assets back without taking a loss because if they don't, Thailand could tighten the rules more until Thailand gets all the profits and is unwilling to buy the assets at the original price.

[cdnvic]

If is easy for Thailand to get its assets back. Since all profits are derived from Thailand, all they have to do is tax all monies from telecom businesses that leave Thailand at a 50% or higher rate. Singapore would be more than willing to sell the assets back without taking a loss because if they don't, Thailand could tighten the rules more until Thailand gets all the profits and is unwilling to buy the assets at the original price.

I'm sure Singapore has it's own financial strings it can pull. Besides that would really send a bad message to those who are thinking of investing in Thailand.

[hammered]

My guess is that a little horse trading occurs and something that saves face for all sides will be worked out. They'll thump their chests for a little while yet though.

I am sure there will be some more chest thumping. That will go down very well with a lot of the Thai populace and it is them that these kind of statements are aimed at.

[farangsay]

Tell me if I'm missing something here.

Foreign shareholding in Thai companies is limited to 49%

Shin corp is a Thai company

Shin shares are currently in the toilet

Enfoce the (pre-coup) law and buy back a controlling

interest at a bargain basement price.

????

[thedude]

what about Telenor, the Norwegian government owns about 70% of DTAC?

[h90]

If Temasek's takeover was legal and met all required sale stipulations of the law at the time, then Thailand will just have to wear it or offer a fair market price and ask for good faith.

There is enough corruption and cheating in Thailand, that if this asset was legally sold and bought, then tough 5hit.

I do not see this coup government turning out good for Thailand or being willing to let go when it really comes down to it. I fully expect the interim government will NOT be replaced by a demorcratic one that anywhere near meets a normal international definition of democracy.

If you reverse everything with cheating and corruption, than you can reverse all bigger deals of the last 300 years....

[richard10365]

Thailand's Sondhi Wants Assets Back From Singapore

'' Sondhi said. ``We have to see whether we can bring those assets back. As a soldier, I need to recoup those assets.''

If I was Singapore, this statement would make me nervous. Basically he is saying he will use the military to get these assets back.

The guys in charge of Thailand are starting to sound like George Bush more and more.

[loong]

Why do they want 100 billion Bt fine from ITV?

[zhudi]

what about Telenor, the Norwegian government owns about 70% of DTAC?

what percentage of the company is thai and what percentage foreign? Dont we still have a controlling majority?

[wrecker]

And Singapore says, no problem pay us for it, after all we do not need your Thai licene. The satellites are high up there, and we have the codes. So we will cut your military satellieets off, and that serving UBC, and those serving the TOT.

Sonthi and friends are or incredibly ignorant, or they are the proof that military and intelligence do not go well together.

I wonder what would happen if countries where are those big mouthed people have assets themselves would invalidate their investments. I assume that Thailand will pay a very very high price in Economic development if this escalates. If your investments are not safe and if stupidity rules (our conversations are routed through Singapore.... bahhh) tahn sufficiency economy is the only way to survive. Ask Burma and North korea. Sonthi and Sondhi are here to stay they love to call themselves the elite and do not give a rats ass about democracy ordinary people and foreign investors.

[tuky]

Tell me if I'm missing something here.

Foreign shareholding in Thai companies is limited to 49%

Shin corp is a Thai company

Shin shares are currently in the toilet

Enfoce the (pre-coup) law and buy back a controlling

interest at a bargain basement price.

????

Thaksin's family last year sold its entire 49.6 percent stake in Shin Corp. for $1.9 billion tax free to investors led by Temasek. The Temasek-led group increased its stake in Shin to more than 96 percent through a tender offer.

I do believe this is the reason for the crack down on foreign ownership recently.

It seems that 96% of Shincorp is owned by Temasek indirectly (Singaporean Gov't.

The Mother of an Sg girl I dated for 4 years is a lifetime member of the Temasek Country Club. This club is an officers type club, she received her membership through inheritance and it is worth several million $sing.

[MamsMitch]

Just wait, They will Nationalize the telicom industry and all will be solved... Of course that depends on the side you choose... In the end the Gov will take control of the industry unless they cut a deal and make the Military happy.

[chuchok]

Yesterday in Singapore, a taxi drive (Who spoke much better english than Thaksin) asked me why the Thai government was trying to screw over Singapore.

[cdnvic]

Thailand's Sondhi Wants Assets Back From Singapore

'' Sondhi said. ``We have to see whether we can bring those assets back. As a soldier, I need to recoup those assets.''

If I was Singapore, this statement would make me nervous. Basically he is saying he will use the military to get these assets back.

The guys in charge of Thailand are starting to sound like George Bush more and more.

He won't. Thailand's military isn't up to it. They'd also have to go through, over or around Malaysia if they did and Malaysia would never allow that.

[Xeque]

Sort of (like) "Give us back our Elgin Marbles"

Fat chance

[Briggsy]

The satellite control centres for the satellites previously owned by Shin Corp are on Chaeng Wattana Road and Lat Lum Kaeo district of Pathum Thani province. If they really wanted to, they could walk in any time.

[solo siam]

The Singapore company has some responsibility to shoulder, I mean they hold the company through a number of questionable entities to evade the 51% rule, helping Taksin to avoid taxes etc..

I mean buying such a huge company directly from the prime minister of said country. They must have known there would be questions when Taksins time ended, knew that there were rules they were circumnavigating in terms of ownership etc.. They took a risk, it looks like it won't be paying off.

For Thailand they simply need to follow through on their own rules, perhaps limit foreign ownership of telecomms/energy etc... to 25% or so.

[nick2k]

what about Telenor, the Norwegian government owns about 70% of DTAC?

what percentage of the company is thai and what percentage foreign? Dont we still have a controlling majority?

foreign 70% thai 30%. the answer to your question is - no.

do you like to read? well, I will offer the sources for you to read. it is up to you to read. reading is good for you.

read.

http://en.wikipedia.org/wiki/Telenor#Thailand

http://kelive.kimeng.co.th/kelive/UploadPd...1021_ucom_e.pdf

http://www.samartcorp.com/download/2005/Sa...panyLimited.pdf

http://bdo-thaitax.com/publications/pub_ta...us_2006_mar.pdf

http://bidding.airportthai.co.th/airportne.../history2en.php

[AsiaCheese]

If is easy for Thailand to get its assets back. Since all profits are derived from Thailand, all they have to do is tax all monies from telecom businesses that leave Thailand at a 50% or higher rate. Singapore would be more than willing to sell the assets back without taking a loss because if they don't, Thailand could tighten the rules more until Thailand gets all the profits and is unwilling to buy the assets at the original price.

Clever, Bob. Very clever!

Sounds good, until you look at what that would do to any & all potential future foreign investors...!

[Gianni77]

I'm sure Singapore has it's own financial strings it can pull. Besides that would really send a bad message to those who are thinking of investing in Thailand.

There are some sign of this, you got the december's stake market problem... The military junta and the new interim PM are trying their best but they're not politicians, even though I'm a person that don't like politicians, politicians are meant to deals with this kind of things and I'm sure they'd deal with this in a better way.

I really believe this government has good intentions and have done some good things (as try to negociate with the insurgents in the south), but I think soldiers to the military as politicians to politics... also excesive nationalism is bad, open a little wouldn't do bad to Thailand, I love Thailand and don't want to see a second Nazi party or extremists doing bad things in Singapore.

Common sense, that's all we need to deal with this...

Have you all guys a nice weekend and happy new chinese new year if I don't post anything before that (for anyone reading that celebrates this holiday)