Samart Interested In Shinsat

[george]

Samart interested in ShinSat

BANGKOK: -- Samart is conducting a feasibility study into acquiring shares of Shin Satellite (ShinSat), company president Vatchai Vilailuck said yesterday.

Vatchai said the company had already informed its Malaysian strategic partner, Telekom Malaysia, of its interest in the satellite business. The Malaysian telecom giant owns 18 per cent of Samart. "We've yet to approach ShinSat shareholders on the matter," he added.

He said some investment bankers had approached Samart about helping the company facilitate the deal but that political factors were key to Samart making a decision about acquiring ShinSat shares.

"Besides considering whether the satellite business can add value to our group, we must pay the utmost attention to political factors. We must be prudent about that matter, because we have a foreign strategic partner," he said. "If we decide to invest in ShinSat, it will be the biggest investment in our business history," Vatchai said.

Thailand's junta recently stated it wanted to take back the satellite concessions of ShinSat from foreign ownership, citing national-security concerns. ShinSat is 41.34-per-cent owned by Shin Corp, which is now owned mainly by a group led by Singapore's state investment arm, Temasek Holdings. The government is also considering whether past amendments to the ShinSat concession contract comply with relevant laws.

Samart's businesses range from handset sales to bidding for state projects, as well as air-traffic-control and energy operations.

-- The Nation 2007-03-01