EGAT Privatization Aimed At Peoples Interest

[Jai Dee]

ENERGY MINISTER: PRIVATIZATION OF EGAT IS AIMED AT THE INTERESTS OF THE PEOPLE

Energy Minister Wiset Jupibal (วิเศษ จูภิบาล) explained that the privatization of Egat Public Company is aimed at generating benefits for the country and its people, while insisting that the Ft rate adjustment is not related to listing of the company in the stock exchange of Thailand.

Mr. Wiset reiterated that the privatization of Egat follows the government’s policy declared to the Parliament in 2001, adding that the privatization is intended to generate the most benefits for the people and the country. He added that making Egat a private company will also ensure the company in mobilizing financial support needed for future investments. He said that the privatization will help reduce the government’s burden in guaranteeing the loans.

Mr. Wiset insisted that the government will hold the majority of shares in Egat Plc, as it will have more than 75% of all shares offered. However, he said that the organization will now be managed like a private firm. He said that the Energy Ministry will try its best to take care of the people’ interests. He also said that the distribution of Egat shares is not related to adjustment of fuel tariff rate, as the adjustments are carried out every 3-5 years.

Source: Thai National News Bureau Public Relations Department - 14 November 2005

[stumonster]

maybe one of the thai reporters needs to ask Energy Minister Wiset Jupibal (วิเศษ จูภิบาล) to point out where else in the world privatisation of the national electricity supply authority has " generated benifits for the county and its people " .

[Jai Dee]

ADMINISTRATIVE COURT WILL ANNOUNCE THE JUDGMENT ON FREEZING EGAT STOCK DISTRIBUTION TOMORROW

The Administrative Court will give a verdict on whether the Electricity Generating Authority of Thailand (EGAT) should freeze its stock distribution or not tomorrow (November 14th). The verdict will be announced before the subscription dates on November 16th and 17th.

Energy Minister Wiset Jupibal (วิเศษ จูภิบาล) visited the Administrative Court today to clarify the facts about the prosecution between the representatives from the Consumer Protection Association and the EGAT. If the EGAT passes the court’s approval, then it can start to trade its shares on November 30th.

The verdict should be issued tomorrow at 1:30 P.M.

Source: Thai National News Bureau Public Relations Department - 14 November 2005

[ratcatcher]

The interests of which people?

My gut feeling is the mega rich cronies of PM Thaksin. Once they get control and believe me,the Shinawatra family will be right up there with their holdings,they can use the electricity cables for many other purposes in the communication business and you know who controls them!

Not a good idea as far as the general public is concerned.

[Jai Dee]

OPPONENTS OF LISTING OF EGAT WILL SUBMIT LETTERS DEMANDING A HALT IN DISTRIBUTION OF SHARES TODAY

Many organizations opposing the listing of Egat Public Company are prepared to submit letters demanding a halt in the share distribution today. At around 8 AM today, the opponents of the listing of Egat Public Company will gather in front of the Stock Exchange of Thailand, the Parliament, and the Security and Exchange Commission, to demand a halt in listing the company in the stock market. Then, at 10 AM, representatives from Confederation of Consumer Organizations of Thailand will gather in front of the US embassy in Thailand, to submit a letter warning foreign investors against purchasing the shares, as the Confederation and other civic groups will fight against the planned listing until the end.

They said that the battle against distribution of Egat shares can cause great investment risks for investors both prior to and after the sale. The Confederation will also submit its letters to other embassies.

Source: Thai National News Bureau Public Relations Department - 15 November 2005

[womble]

The listing has been halted, this is going to have a huge inpact on the stock exchange.

It's gonna go into free fall this afternoon!

[Jai Dee]

ADMINISTRATIVE COURT ISSUE INJUNCTION AGAINST PLANNED IPO OF EGAT SHARES

Judge of the Administrative Court Mr. JARUN HUTTAGAM (จรัล หัตถกรรม) ordered a temprary freeze on the share distribution of the Electricity Generating Authority of Thailand (EGAT).

The Administrative Court issued an injunction against the planned initial public offering (IPO) of Egat shares, now waiting trial of the lawsuit against the privatisation plan. The Judge of the Administrative Court decided to suspend EGAT’s share distribution now as it would not affect the operations of Egat as claimed by the government. Energy Minister Wiset Jupibal (วิเศษ จูภิบาล) claimed that the suspension would affect investors’ confidence and EGAT’s investment. The Judge viewed that EGAT should not expand its services now. If the Administrative Court allow EGAT to distribute its shares today, and suspend on a later date, the verdict will severely affect the subscription dates on November 16th and 17th.

Meanwhile, the representatives from the Consumer Protection Association rejoiced after hearing the verdict. However, they said they will continue to fight to the bitter end to oppose the sales of Egat Plc's shares.

Source: thaisnews.com ประจำวันอังคารที่ 15 พฤศจิกายน 2548

[Jai Dee]

DPM WISANU: THE GOVERNMENT HAS TO ACCEPT THE SUPREME ADMINISTRATIVE COURT'S RULING ON EGAT SHARE SALE

Deputy Prime Minister Wisanu Krea-ngam (วิษณุ เครืองาม) indicated that the government had to accept the Supreme Administrative Court’s ruling to halt the planned Initial Public Offering of EGAT's shares, but said that the Court has to quickly deliberate the Privatization Act so that the economy will not be severely affected.

Mr. Wisanu admitted that there will be some effects from the halt of EGAT's IPO, adding that the government could not appeal because the ruling was handed down by the Supreme Administrative Court. However, he said that the court had not made its decisions on the content of the Privatization Act.

Mr. Wisanu said that the government will not urge the Administrative Court to quickly deliberate the matter, because it will affect the image of the Court. However, he said if the court finishes its consideration on the Act soon, the matter can be finalized and the affects on the economy will not be too great.

Source: Thai National News Bureau Public Relations Department - 16 November 2005

[Sandstone Art]

I hope the court will not approve this privatazation to help the rich get richer!

[Jai Dee]

ENERGY MINISTER: SUSPENSION OF EGAT SHARE SALE WILL AFFECT INVESTOR CONFIDENCE

Energy Minister Wiset Jupibal (วิเศษ จูภิบาล) insists that the suspension of the Electricity Generating Authority of Thailand (EGAT) share sale will affect investor confidence.

The Energy Minister admitted that the Supreme Administrative Court’s ruling to halt the distribution of EGAT shares will affect the investors' confidence. He insisted that the privatization of the company has followed the rule of law, adding that a public hearing had been conducted to survey the people’s opinion prior to the privatization. He said that all concerns and observations had been incorporated into the privatization plan.

Mr. Wiset said that there has not been a discussion on how to proceed with the privatization, following the suspension of EGAT stock distribution.

Source: Thai National News Bureau Public Relations Department - 16 November 2005

[Heng]

Subsidized gasoline, electricity, water, etc. are bike training wheels that all societies need to shed at some point. It's better for the people in the long run. Let market forces dictate prices.

[awarrumbungle]

Gasoline, electricity, water are all things that we should conserve or rethink our usage of. If the prices do go up then maybe it is better for the health of the world.

[Jai Dee]

Power play looms over EGAT float

Democrats team up with consumer groups

The temporary ban on Egat Plc's listing could lead to a standoff between the opposition, looking to forge an alliance with opponents of the utility's partial privatisation, and the government, which refuses to budge on the share float.

Opposition chief whip Sathit Wongnongtoey said the opposition would form a working group to vet the two royal decrees behind the Egat Plc share sale.

It would also help the Confederation of Consumer Organisations (CCO) with legal expertise needed to fight the government in court to scrap the listing for good.

"The working group will be pleased to supply the information they require.

"We'll also divulge the facts behind the case, unlike what the government has given people," Mr Sathit said.

Eleven members of the CCO, a consumer advocacy network, asked the Supreme Administrative Court to find whether the decrees designed to smoothen the transfer of state enterprise Egat to Egat Plc were legal.

The court agreed to hear the petition and in the process ordered the initial public offering, which was supposed to have been on Nov 15-16, put on hold. The order is effective until the court reaches its decision.

The government said funds raised from the IPO would finance the utility's expansion.

A source in the Administrative Court said lengthy cross-examination could drag out the trial.

The source said legal aspects of the case were complex. The court would have to decide, for example, if the land on which the power poles stood had been transferred to Egat Plc.

The property was considered a state asset, which should not belong to a listed firm.

The verdict would be final since the case has already reached the Supreme Administrative Court, the source said.

Mr Sathit said the government was reluctant to backtrack on Egat's privatisation despite the court's order.

Many aspects in the decrees had the potential to breach the constitution, such as the possible monopoly on production and sale of power by the listed firm, or leeway to recruit foreigners as full-time staff of Egat Plc.

Other issues dogged by a lack of openness included the lease of dams for power generation.

Senator Sak Korsaengruang said fellow senators had set up a panel which had advised the government against the Egat share float.

The privatisation should be limited to a private firm being allowed to produce and sell electricity to the government.

The recommendation, however, had fallen on deaf ears, he said.

Sanoh Thienthong, leader of the Wang Nam Yen faction in the ruling Thai Rak Thai party, praised the Supreme Administrative Court for safeguarding the national interest.

"Water and electricity are the staff of life. We can't just hand them over to anyone as we please," he said.

Deputy Prime Minister Visanu Krua-ngam maintained the court order would not disrupt the legal and technical procedures under the decrees. The temporary suspension only applied to the IPO.

Finance Minister Thanong Bidaya said the decision to list Egat Plc was the right one. All laws organic to partial privatisation had been properly scrutinised and enacted in parliament.

The court order may delay overall state enterprise privatisation, but the policy would not be abolished, he said.

"It's business as usual. Everything will go as planned," he said. The listing would ease the government's financial burden through infusion of revenue from stock trade.

Energy Minister Viset Choopiban conceded investor confidence took a battering from the IPO suspension. He and Mr Thanong had agreed to cancel the roadshow which the ministries had planned in the United States in the next few days to advertise the Egat listing.

Vorapak Tanyawong, a managing director of JP Morgan Securities (Thailand), said the IPO halt could cost the country around US$1 billion in lost share orders from foreign investors.

Source: Bangkok Post - Thursday 17 November 2005

[Jai Dee]

FINANCE MINISTER: THERE WILL BE NO REVIEW OF EGAT PRIVATIZATION PLAN.

Finance Minister Thanong Pittaya (ทนง พิทยะ) insisted that the government will go ahead with privatization of Egat, adding that all related officials are ready to testify to the Supreme Administrative Court.

Finance Minister Thanong said that although the Supreme Administrative Court has ordered the sale of Egat shares to be suspended, he said the ministry will push for the privatization of the state enterprise. He expressed belief that once the court has deliberated all related information, it will agree with the privatization plan. He also insisted that there will not be a review of the privatization plan.

Source: Thai National News Bureau Public Relations Department - 17 November 2005

[Jai Dee]

ENERGY MINISTER IS PREPARED TO GIVE ADDITIONAL TESTIMONIES TO THE SUPREME ADMINISTRATIVE COURT CONCERNING EGAT PRIVATIZATION

Energy Minister Wiset Jupibal (วิเศษ จูภิบาล) said that he is prepared to give additional testimonies to the Supreme Administrative Court on some vague issues concerning the Electricity Generating Authority of Thailand (EGAT). He added that the Ministry of Energy will attempt to correct the people’s understanding of the privatization plan.

Mr. Wiset said that he will propose for the Cabinet to establish a commission comprising seven regulators to oversee electricity generation during its meeting next week. He insisted that the regulators will be able to manage all electricity-related businesses with transparency and fairness to all sides.

As for giving assistance to employees who had borrowed money to buy EGAT shares, the company's executive committee has set up a working committee to deliberate ways to reduce impacts on its employees. The help measures will be concluded and brought to the meeting of the EGAT board on November 24th.

Source: Thai National News Bureau Public Relations Department - 17 November 2005

[Jai Dee]

EGAT EXPRESSES CONCERNS OVER THE OFFICIALS' FINANCIAL STATUS

The executives of Electricity Generating Authority of Thailand (EGAT) have expressed their concerns over the company’s staff who previously borrowed a sum of money to buy EGAT stocks.

The Supreme Administrative Court’s verdict to temporarily freeze EGAT stock distribution has affected more than 25,900 personnel of the company. However, they took out loans worth more than 5 billion baht from financial institutes, in anticipation to purchase the company’s stocks. The Senior Executive Vice President of EGAT, Mr. PICHAI CHULPONGSTORN (พิชัย จุลพงศธร), said that EGAT executives are finding measures to provide financial aids to those employees.

However, the EGAT executives said that all EGAT officials understand the situation. Moreover, the financial measures will be discussed on November 24th again. Meanwhile, they insisted that the company is proceeding in the right direction.

Source: Thai National News Bureau Public Relations Department - 17 November 2005

[Jai Dee]

ENERGY MINISTER PREPARES TO INTRODUCE A NEW LAW ON ELECTRICITY MANAGEMENT

Energy Minister Wiset Jupibal (วิเศษ จูภิบาล) is set to introduce a law on the management of electricity and will organize public hearings on the matter, before submitting it to parliament.

Mr. Wiset said that the draft legislation will set up a framework for management of electricity in the future, adding that a committee will be established to supervise the electricity organization permanently in the future. He added that the Ministry will also ensure the people’s understanding on privatization of Egat Public Company, as many fear that the privatization will amount to the sale of national asset.

Mr. Wiset explained that the listing of the firm in the stock exchange of Thailand is aimed at mobilizing funds for Egat expansions in the next ten years. He expects that Egat will need about 200 billion baht in investment funds to prepare for the people’s rising demands in electricity. He said that the funds will allow Egat to invest in power plants in neighboring countries, such as Laos and Cambodia, which have production capabilities that will help reduce electricity costs.

Source: Thai National News Bureau Public Relations Department - 17 November 2005

[Jai Dee]

Thai public agrees with Court ruling on EGAT listing, poll shows

BANGKOK, Nov 18 (TNA) - An opinion survey conducted by the Krungthep Poll Centre revealed that a majority of respondents support the Supreme Administrative Court's ruling Tuesday to put the controversial initial public share offering of the state-owned electricity firm EGAT Plc.

The Centre said 65 per cent of the people polled said they agreed with the Court ruling, and 64 per cent indicated that they believe the ruling will impact investor confidence.

Fifty-five per cent said the government should put EGAT's partial privatisation on hold in order to further study the pros and cons as well as listening to a widest possible range of public opinion on the controversial issue.

At the same time, 72 per cent of respondents to the survey said they disagreed with any sort of privatisation of state enterprise as such would amount to selling off national assets to certain groups of people. In addition, 43 per cent of those surveyed said the privatisation of other state enterprises -- namely the oil firm PTT, the Telephone

Organisation of Thailand (TOT) and MCOT Public Company Limited , formerly known as the Mass Communication Organization of Thailand -- should all be reviewed.

Slightly over 1,500 persons were polled on Wednesday, according to the Centre. Of that number 42.3 per cent are male and 57.7 per cent are female.

Source: TNA English News - Friday 18 November 2005

[Jai Dee]

OPPOSITION DEMANDS GOVERNMENT TO INFORM THE FACT ABOUT THE RENTING OF DAM BETWEEN EGAT AND THE TREASURY DEPARTMENT

Democrat Spokesman Ong-art Klampaiboon (องอาจ คล้ามไพบูลย์) said that if the government still wants to go head with the plan to privatize the Electricity Generating Authority of Thailand (EGAT), it should address the unclear facts about renting of dam between EGAT and the Treasury Department.

He added that government should reveal the content in the contract, and that government should affirm that the general public will not lose the benefit from the contract of renting national resources.

Mr. Ong-art said that government should halt the plan to privatize EGAT since government should manage and improve the qualities of many state enterprises.

Source: thaisnews.com ประจำวันจันทร์ที่ 21 พฤศจิกายน 2548

[stumonster]

The Supreme Administrative Court’s verdict to temporarily freeze EGAT stock distribution has affected more than 25,900 personnel of the company. However, they took out loans worth more than 5 billion baht from financial institutes, in anticipation to purchase the company’s stocks.

25900 - out of how many employees? or are they just upper management? - I wonder if EGAT will provide a list - no names , just managerial level would do....

The Senior Executive Vice President of EGAT, Mr. PICHAI CHULPONGSTORN (พิชัย จุลพงศธร), said that EGAT executives are finding measures to provide financial aids to those employees.

financial assistance to those employees who took out loans to purchase shares in a company about to be made public....

"Insider trading" is buying or selling a security while having material, nonpublic information about the security, in breach of a fiduciary duty or other relationship of trust and confidence. Insider trading may also include "tipping" such information, securities trading by the person "tipped," and securities trading by persons who misappropriate such information. Insider trading is a felony, and the SEC can levy large civil penalties for violations.

http://cobrands.business.findlaw.com/banki..._8glossary.html

[Plus]

I somewhat agree with Heng about market forces etc. but this privatisation is creating a monopoly without and regulations in place.

As for the "benefits for people" - I usually read only about how good it will be for the stock market and for economy in general, even though Egat's primary focus should on poviding affordable electricity, not profits to the state or shareholders, or tax revenues.

PTT might have become one of the best managed companies in SE Asia, or made huge profits unimaginable before, but I always remember that it's with my money that they are able to roll in dosh and their success comes from my sweat, and I'm not buying into this "good news" at all.

[BkkPundit]

25900 - out of how many employees? or are they just upper management? - I wonder if EGAT will provide a list  - no names , just managerial level would do....

According to the Bangkok Post of 16 Nov 2005, of the 25,900 Egat staff members, only 26 decided not to subscribe to an employee stock option programme.

The employees have been offered shares well below the listed cost so it would make sense that they would to buy them.

Edited November 22, 2005 by BkkPundit

[stumonster]

staff

The employees have been offered shares well below the listed cost so it would make sense that they would to buy them.

I agree they would immediatley appreciate in value , but I still wonder if 29,000 is all of the EGAT employees

[Jai Dee]

DEMOCRATS ASK FOR THE RENTING CONTRACT OF DAM BETWEEN EGAT AND THE TREASURY DEPARTMENT

Two Members of House of Representatives from the Democrat Party SIRICHOK SOPHA (ศิริโชค โสภา) and MR APHIMONGKOL SANOKUL (หม่อมหลวง อภิมงคล โสนกุล) have submitted a letter to the Treasury Department to ask for a copy of the contract made between the department and the Electricity Generating Authority of Thailand (EGAT). The contract concerns with the rental of a dam.

The Democrat Party members said that this would help them evaluate the government performance, and the general public would not lose any benefit from the contract. They insisted that if the Treasury Department fails to cooperate, the Information Act will then be used to sort out the problem.

Source: Thai National News Bureau Public Relations Department - 23 November 2005

[Jai Dee]

Egat prepared to go higher

Published by The Nation on Nov 24 , 2005

Egat Plc will petition the Constitution Court if the Supreme Administrative Court rules against its partial privatisation plan, its chairman Chai-anan Samudavanija said yesterday.

Chai-anan said he was confident Egat would finally be able to list on the stock market, but if the Supreme Administrative Court ruled to cancel the listing, the company would go to the Constitution Court for a ruling on the role of the Administrative Court.

"Damage must have happened to the public first, then the Administrative Court could rule for a suspension of the stock listing," said Chai-anan, himself a former member of the Constitution Court.

The Supreme Administrative Court recently ruled that Egat must temporarily suspend its initial public offering after consumer groups filed against the sale of state assets. The court is expected to make a decision on whether or not to allow Egat's IPO plan to go ahead within the next two months.

Chai-anan said all concerns given as reasons to suspend the Egat listing were things which may or may not arise in the future. By international practice, administrative courts do not accept cases involving concerns about the future, but consider only cases in which damage has already been done, he added.

The Administrative Court is an independent institution responsible for administrative cases, but the Egat listing comes as a result of government policy which has been outlined to Parliament.

"I'm confident the Egat listing will happen because the process has been implemented in a transparent manner. The two royal decrees enacted to support the listing also come under the State Enterprise Capital Act," he said.

Regarding a fear that some politically connected telecom companies could exploit Egat's fibre-optic network following the listing, Chai-anan said the network would become a supplementary income source for Egat and as long as he continues to be chairman, he will retain Egat's complete ownership of the subsidiary.

"Egat will form alliances with the Metropolitan Electricity Authority and the Provincial Electricity Authority in the fibre-optic business, rather than joining with telecom firms," he said.

Asked about public dissatisfaction over the Cabinet choices on Tuesday for an interim regulatory committee for the electricity industry, Chai-anan - who took part in the nominations - said the panel's members could be reviewed in the future since the government is drafting a new law that would enable the establishment of a permanent regulatory body.

He added that earlier, Vitoon Pongsacharoen, a former member of the National Economic and Social Advisory Council, had been proposed as a consumer representative on the interim regulatory board. However Anan Asavabhokin, the chief executive of real estate company Land and Houses Plc, finally appeared.

"To be sure that the public would have a chance to participate in regulating the industry, I will recommend the government allow representatives from NGOs to sit on the new regulatory committee which will be established in the future," he said.

He said that even after the stock market listing, Egat would not be able to focus only on making the highest profit because the state would retain a majority stake and the government would have to look to its popularity and consider public pressure.

Norkhun Sitthipong, deputy permanent secretary of the Energy Ministry and also a member of the Egat board, said he estimated Egat could begin trading on the stock exchange within six months.

The board has, therefore, agreed that Egat employees could postpone repayment of the money they borrowed from the agency's cooperatives to buy shares, and approved an extension of the lock-up period, which prohibits the sale of the stock by staff.