Temasek To Postpone Shin Corp Share Sale

[Jai Dee]

THAILAND: Temasek to postpone Shin Corp share sale

Temasek waiting for clarification on ownership rules

Temasek Holdings will postpone a plan to sell shares in Shin Corporation pending Thai government clarification of ownership rules, said a fund-management source.

"They have to put the plan on hold because potential buyers, who are still interested in buying Shin shares, want to see a clearer picture on the investigation," said the source, who declined to be identified.

Temasek had been expected to sell up to 46% of Shin Corp this month to reduce its aggregate holding in the telecoms conglomerate to 49%, the source said.

Temasek owns more than 96% of Shin, whose stock has plunged nearly 40% to 30 baht from the 49.25 baht a share the Singaporean firm paid to the family of ousted prime minister Thaksin Shinawatra.

The government installed following the Sept 19 coup has launched an investigation into whether Temasek's $3.8-billion takeover broke laws limiting foreign ownership of Thai telecom firms to 49%.

The investigation centres on Kularb Kaew, a holding company set up as part of Temasek's takeover of Shin Corp.The key question is whether Kularb Kaew, controlled by Surin Uptakoon, a Malaysia-based Thai businessman who was a partner in the takeover, is a Thai company or a Temasek nominee.

Finance Minister M.R. Pridiyathorn Devakula reiterated yesterday that the government would give foreign companies "some time to adjust" if they were found to be in breach of nominee rules once they were clarified.

He said a Commerce Ministry committee reviewing the foreign ownership law would deliver its recommendations by the end of this month.

Source: AsiaMedia - Thursday, November 16, 2006