Airline's New Owner Thought To Be A Front

[Erwin1011]

Assume Thai Air Asia = 100 shares

Malaysia Air owns 49 % = 49 shares

Shin Corp owns 51% = 51 shares

Temasek owns Shin Corp 49 %, thus it owns 51*49%= 25 hares in Thai Air Asia

Malysia Air 49 shares

Temasek 25 shares

Sum foreign ownership = 74 shares out of 100

It is divided like this:

Air Asia(thailand)

49 percent-Air Asia(Malaysia)

51 percent-Chin Corp. Thai Company-Temask does not own shares in the Company, But Shin Corp. does, which is owned by Temask at 49 percent.

Ergo : Temasek owns 49% of Shin Corps assets and therefore indirectly 25 shares. that makes the total foreign claim on Air Asia Thailand larger than 50%

[britainmal]

Ergo : Temasek owns 49% of Shin Corps assets and therefore indirectly 25 shares. that makes the total foreign claim on Air Asia Thailand larger than 50%

You can not count indirect ownership. Only direct ownership is counted.

[raro]

Temasek owns Shin Corp 49 %, thus it owns 51*49%= 25 hares in Thai Air Asia

...I thought it was an airline and not a rabbit farm....

[Erwin1011]

Ergo : Temasek owns 49% of Shin Corps assets and therefore indirectly 25 shares. that makes the total foreign claim on Air Asia Thailand larger than 50%

You can not count indirect ownership. Only direct ownership is counted.

Show me the paragrapgh in the foreign business law that allows this and I'll be convinced.

[dan10400]

Ergo : Temasek owns 49% of Shin Corps assets and therefore indirectly 25 shares. that makes the total foreign claim on Air Asia Thailand larger than 50%

You can not count indirect ownership. Only direct ownership is counted.

since you seem to be so sure of yourself here on this issue, i suggest you

take your resume, walk over to Temasek and explain to them all the

money, time, and trouble they can save by not needing to set up this

company (front or otherwise) to address the foreign ownership limitiations

on airlines operating domestic routes.

then maybe we can just erase this thread as there is no purpose for us

to discuss a front company that doesn't need to exist.

[britainmal]

Well, I never heard of indirect shares. We talk in actually shares. This show how Thai Law makes no sense and is xenophobic.

[moonoi]

Well, I never heard of indirect shares. We talk in actually shares. This show how Thai Law makes no sense and is xenophobic.

Quite a simple thing to understand

You own one company that in turn owns another, so you have indirect shares in that company....you personally don't own them but the company you own does. Nothing Xenophonic about it and is quite common all around the world.

Simple

EDIT: Just to make that a bit clearer you still own "actual" shares in the company your just using the company you own directly to hold the shares for you...or to use another phrase as mentioned in previous posts...your using your company as a proxy. Of course my example is quite simple, you could setup many companies, possibly around the world in differant juristrictions that each own shares in one other company so that on the face of it there are many differant share holders. You can add any levels in to increase the complexity and thats why investigations into things like this can take years.

Edited February 20, 2006 by moonoi

[sriracha john]

Asia Aviation Co faces lawsuit for 'fake office'

The Department of Business Development is preparing to take legal action against Asia Aviation Co Ltd, the new majority owner of Thai AirAsia, for registering a false office address. Dusit Juchupongamorn, the department's deputy director-general, told the Senate Foreign Relations Committee yesterday that the department has in recent years foregone the inspection of the establishments of newly-registered companies because of work overload.

''We have inspected the address and we are in the process of filing a lawsuit with the authorities,'' he said.

Consumer advocates found the registered address of Asia Aviation to be an empty office, sparking allegations that the firm was just a front company. The firm was established to meet the foreign holding requirement to run the low-cost airline after the acquisition of Shin Corp by Singapore's Temasek Holdings.

Mr Dusit also said a probe would be carried out into the legitimacy of the registration process and the intentions behind the establishment of the company.

- BP