SEPO to Sell 133 Company Shares for Market Value Over 5 Years

[snoop1130]

 

In a strategic move to boost state liquidity, the State Enterprise Policy Office (SEPO) plans to divest shares held by the Finance Ministry where stakes are below 50% over the next four to five years. SEPO Director-General, Tibordee Wattanakul, announced this initiative, noting previous challenges in selling such shares due to a lack of interest and concerns about potential losses.

 

To mitigate these issues, the divestment will employ a mark-to-market pricing method, ensuring that share sales reflect current market conditions. This approach is essential, Tibordee explained, as many shares' market values have declined, rendering sales at the original acquisition cost financially unfeasible.

 

Holding these shares comes with substantial opportunity costs. Tibordee highlighted that maintaining stagnant assets may cause greater fiscal harm than potential losses from selling below book value. By selling these shares, the state can release much-needed liquidity, partially offsetting current financial rigidity.

 

The Finance Ministry currently holds shares in 133 companies with stakes under 50%. SEPO plans to auction these shares in phases, pending ministry and Cabinet approval. After completing sales, stakes will be retained in approximately 20 companies. It's estimated that the sales could generate between 30 to 40 billion baht.

 

For smaller holdings, where the ministry has only 3% to 5% stakes, SEPO may collaborate with private firms to increase their attractiveness to investors by selling them as larger, consolidated blocks.

 

Many shares were acquired through non-standard methods, such as asset seizures by the Anti-Money Laundering Office, often limiting returns due to minor stakes. The Cabinet must review and approve all share sales, determining which shares align with the ministry's objectives and should be retained. Sales will only occur for those deemed non-essential to the ministry's mission.

 

File photo for reference only

 

-- 2024-11-04

 

 

[john donson]

dumping useless stock...