Thai Minister Says Temasek Should Not Be Prosecuted

[Thaising]

SINGAPORE - The Thai government does not want Singapore's Temasek Holdings to be prosecuted even if it broke Thailand's foreign ownership laws when it bought a stake in Shin Corp, a senior Thai official said on Monday.

Thai Information & Communications Technology Minister Sittichai Pokaiudom's comments in an interview with Dow Jones Newswires indicate that the divisive deal will be resolved in a way that preserves Thailand's foreign investment reputation and keeps one of Temasek Holdings' biggest investments in the region largely intact.

'I'm not a prosecutor, but I don't want to upset the entire telecoms sector and this is also the view of the prime minister,' said Mr Sittichai, the minister responsible for the kingdom's telecommunications industry.

'Temasek must find a way to bring its shareholding to the level which is in line with the law, but the government won't pursue legal action on its part and Shin won't lose its (telecoms) concession,' he said.

Continue here :http://www.businesstimes.com.sg/sub/latest/story/0,4574,232438,00.html?

[chevykanteve]

SINGAPORE - The Thai government does not want Singapore's Temasek Holdings to be prosecuted even if it broke Thailand's foreign ownership laws when it bought a stake in Shin Corp, a senior Thai official said on Monday.

Thai Information & Communications Technology Minister Sittichai Pokaiudom's comments in an interview with Dow Jones Newswires indicate that the divisive deal will be resolved in a way that preserves Thailand's foreign investment reputation and keeps one of Temasek Holdings' biggest investments in the region largely intact.

'I'm not a prosecutor, but I don't want to upset the entire telecoms sector and this is also the view of the prime minister,' said Mr Sittichai, the minister responsible for the kingdom's telecommunications industry.

'Temasek must find a way to bring its shareholding to the level which is in line with the law, but the government won't pursue legal action on its part and Shin won't lose its (telecoms) concession,' he said.

Continue here :http://www.businesstimes.com.sg/sub/latest/story/0,4574,232438,00.html?

I thought the sale was not illegal under the Thai law of the time anyway. More face-saving statements, or....?

[oooooo]

or what? things here change on a hourly basis. TIT

[Erwin1011]

Just preparing for the next change over and covering his arse. Read this and the bit in the BkkPost about Taxin nominated president of the Thai Golf Association. The come back is on the way.

[Pepe']

I think the moral of the story is only really really big crime pays.

[Mid]

Temasek in for business, not to spy: Thai coup leader now says

Hot News // Tuesday, June 26, 2007

A SINGAPORE investment in Thailand that fuelled public protests culminating in the overthrow of Prime Minister Thaksin Shinawatra's government was "just business", said General Sondhi Boonyarataklin, the architect of last year's coup.

.

Gen Sondhi also backed away from claims made earlier this year that Singapore could use the assets to spy on the military, saying the accusation was part of "a strategy speech to make Thai people feel more protective about the country's assets".

need further proof that soldiers don't make politicians .??

[chinthee]

Temasek in for business, not to spy: Thai coup leader now says

Hot News // Tuesday, June 26, 2007

A SINGAPORE investment in Thailand that fuelled public protests culminating in the overthrow of Prime Minister Thaksin Shinawatra's government was "just business", said General Sondhi Boonyarataklin, the architect of last year's coup.

.

Gen Sondhi also backed away from claims made earlier this year that Singapore could use the assets to spy on the military, saying the accusation was part of "a strategy speech to make Thai people feel more protective about the country's assets".

need further proof that soldiers don't make politicians .??

You're giving too much credit. Not that clever.

[steveromagnino]

SINGAPORE - The Thai government does not want Singapore's Temasek Holdings to be prosecuted even if it broke Thailand's foreign ownership laws when it bought a stake in Shin Corp, a senior Thai official said on Monday.

I thought the sale was not illegal under the Thai law of the time anyway. More face-saving statements, or....?

Despite changing to the ownership regulations to 49% foreign ownership so that he could sell it, Taksin sold effectively 96% of the company to Temasek, which is far beyond the 49% allowed - even Temasek for a while after the sale were saying they owned 96% of Shin; a large chunk of shares sold were sold to nominee structures effectively (illegally) circumventing the laws of Thailand although not entirely without precedent timeline wise although perhaps never tested thoroughly in court.

Singapore never did due diligence, because they were expecting to be protected by the TRT empire, which subsequently has not happened.

Despite his massive telco meddling, Taksin did manage to run a fairly decent company, and as long as they do a similar exercise to how they got out of problems with AirAsia (selling off the Nominee section to legimate Thai shareholders) I think they should be within the law of correcting the issue of foreign ownership within a year, perhaps with an extension to help them survive the massive very real loss they are about to suffer.

[chinthee]

Yeah, well, you won't find many who really know private equity in Asia that will say anything other than Temasek is as strategic and world class as they come in investing. I don't look for them to take any losses on this in the end, just the opposite.

[Scott]

I find it interesting that the Thai gov't doesn't want to take on the really big boys. What exactly are they scared of?

[chinthee]

I find it interesting that the Thai gov't doesn't want to take on the really big boys. What exactly are they scared of?

Well, you'll just have to do your own research on Singapore Inc. and its friends. I highly recommend that.

[Old Man River]

Yeah, well, you won't find many who really know private equity in Asia that will say anything other than Temasek is as strategic and world class as they come in investing.

And the fact that the Thai government has figured this out is admirable, even though it has taken them longer than it should have.

[chinthee]

Yeah, well, you won't find many who really know private equity in Asia that will say anything other than Temasek is as strategic and world class as they come in investing.

And the fact that the Thai government has figured this out is admirable, even though it has taken them longer than it should have.

YES. Thank God.

[steveromagnino]

Yeah, well, you won't find many who really know private equity in Asia that will say anything other than Temasek is as strategic and world class as they come in investing. I don't look for them to take any losses on this in the end, just the opposite.

That's a little different to how I see it. My friends in equities consider Temasek to be about on par with most govt industries; reasonably inept and underperforming for 'strategic reasons'. I personally think they are fairly sharp, about as sharp as a large govt influenced fund can be, but to call them strategic and world class in the world of investment is a bit off; certainly they are strategic and world class with regards to supporting Singapore, whether this should be their objective, well who knows. And they don't even do what they do that well.

Plenty of data to show their mistakes in Australia, Telcos and more. Plenty of Singaporean, in fact very senior officials worry like hel_l about companies/investors like Temasek and are concerned that they plant some stake in a company then sit back and don't get stuck in; I recall a few detailed conversations where officials/senior statesmen said they worry so much about the new generation of Singaporeans who simply aren't risk takers and want to take minor stakes in various companies rather than getting stuck in and running things themselves. Where are the balls to get involved and add value, they ask.

The FACT Temasek didn't do due diligence is biting them now.

Eventually they may get themselves out of their current predicament. However, reality is obvious to all and sundry that they overpaid. Kind of like Cable and Wireless Optus, DBS bid for Dao Heng Bank, Chartered Semiconductor Manufacturing and STATS ChipPac.

But of course, maybe you consider 1% return to shareholders (released by analysts, unsure of methodology) to be good....for the last 5 years :-) hel_l, even the Straits Times index returned almost 3 times that.

Anyway, given that the former PM was the one doing this, and given the massive risk of disrupting the market and possible business operations, the obvious solution is to lean on Temasek knowing that they don't have much choice in the matter, rather than sue them and cause a larger confrontation than there already is. Singaporeans aren't getting the full news on Temasek as it is censored down there, but I am sure all the people in power know what they have to do, which is why they already restructured Air Asia and will presumably restructure these other entities in due course. Quite considerate really of the Thai govt, and sure to engender support when they need it later on.

Edited June 26, 2007 by steveromagnino

[chinthee]

Yeah, well, you won't find many who really know private equity in Asia that will say anything other than Temasek is as strategic and world class as they come in investing. I don't look for them to take any losses on this in the end, just the opposite.

That's a little different to how I see it. My friends in equities consider Temasek to be about on par with most govt industries; reasonably inept and underperforming for 'strategic reasons'. I personally think they are fairly sharp, about as sharp as a large govt influenced fund can be, but to call them strategic and world class in the world of investment is a bit off; certainly they are strategic and world class with regards to supporting Singapore, whether this should be their objective, well who knows. And they don't even do what they do that well.

Plenty of data to show their mistakes in Australia, Telcos and more. Plenty of Singaporean, in fact very senior officials worry like hel_l about companies/investors like Temasek and are concerned that they plant some stake in a company then sit back and don't get stuck in; I recall a few detailed conversations where officials/senior statesmen said they worry so much about the new generation of Singaporeans who simply aren't risk takers and want to take minor stakes in various companies rather than getting stuck in and running things themselves. Where are the balls to get involved and add value, they ask.

The FACT Temasek didn't do due diligence is biting them now.

Eventually they may get themselves out of their current predicament. However, reality is obvious to all and sundry that they overpaid. Kind of like Cable and Wireless Optus, DBS bid for Dao Heng Bank, Chartered Semiconductor Manufacturing and STATS ChipPac.

But of course, maybe you consider 1% return to shareholders (released by analysts, unsure of methodology) to be good....for the last 5 years :-) hel_l, even the Straits Times index returned almost 3 times that.

Anyway, given that the former PM was the one doing this, and given the massive risk of disrupting the market and possible business operations, the obvious solution is to lean on Temasek knowing that they don't have much choice in the matter, rather than sue them and cause a larger confrontation than there already is. Singaporeans aren't getting the full news on Temasek as it is censored down there, but I am sure all the people in power know what they have to do, which is why they already restructured Air Asia and will presumably restructure these other entities in due course. Quite considerate really of the Thai govt, and sure to engender support when they need it later on.

Well I used the word "strategic" for a reason. They take a very long view of things. Yes, they may not be as good at executing as perhaps Texas Pacific/Newbridge? but they know how to work the top political strings to achieve not only their investment goals, but Singapore Inc.'s long term political and economic goals as well. Whatever "restructuring" they have to do to accomodate long term deep relations with Thailand they will do. And you know what? They will profit in the end. Do you disagree with this based on a couple of short term hits??

[skippybangkok]

Interesting given a few facts:-

1. i think it was the very same minister a few months back making a big issue out of this and all the things he would do to restore sovereignty

2. Same minister is trying to revoke concessions from DTAC / T. Move ( why pushing so hard on a case which is more subjective when the AIS issue is a relatively clear case ). If he does not revoke AIS concession, would be hard to justify his position on the others.

3. Why the sudden about face ?