Singtel Interested In Tot

[george]

SingTel interested in TOT

BANGKOK: -- Singapore Telecom has shown interest in buying shares of TOT Corporation and may consider becoming a strategic partner, according to a TOT executive source.

The interest was conveyed last week when a team of TOT executives and directors travelled to Singapore to attend the CommunicAsia exhibition.

In addition to visiting the telecom showcase, the TOT delegation also met SingTel executives and even discussed the chance of future co-operation.

According to the source, SingTel executives showed interest in buying shares of TOT when they hit the market, by purchasing from the lot to be set aside for foreign investors.

He said that TOT also looked to SingTel as a prospective strategic partner, either directly or indirectly, to help cope with the increased competition after the market is liberalised next year.

However, the source said that a significant share purchase by SingTel would first require consultation with the Finance Ministry, the major shareholder of TOT Corporation.

He said that ministry policy was to float 30% of TOT's registered capital shares in three parts _ for small investors, institutional investors and foreign investors.

In addition, TOT has not decided whether to sell shares to major groups, or seek a business partner.

SingTel is an outstanding prospective partner in the region because of its close culture with TOT, the source said.

Earlier, Finance Minister Somkid Jatusripitak said the ministry had set guidelines to sell 30% or 180 million TOT shares in the public offering.

He has said that TOT would be ready for listing in November. Its strongest selling point is having the ministry as its major shareholder, according to Dr Somkid.

TOT has business advantages over other operators because of its wide customer base and if it could develop an Internet broadband service, it would achieve success in a short time.

TOT president Teerawit Charuwat said that TOT had now completed its due diligence process, and its financial adviser has finished a business plan to be submitted to the TOT board at the end of this month. He said TOT would enter the crucial valuation process of the business plan next month, to investigate how to achieve the goals of the plan, and where investment was needed.

SingTel has been a partner of Shin Corporation, founded by Prime Minister Thaksin Shinawatra, for several years, and holds 20% of the shares in the conglomerate. Shin's core holdings are in telecommunications but in the past two years it has moved into transport through Thai AirAsia and consumer finance through Capital OK.

Shin chief executive Boonklee Plangsiri has indicated his group might recruit an executive from Singapore as Shin Corp diversifies further.

--Bangkok Post 2005-06-20