Singapore's state investment arm Temasek Holdings has unloaded more than 10 per cent of InTouch, formerly known as Shin Corp, for an estimated gain of Bt20.8 billion and to clear up any questions in Thailand over foreign shareholdings and allow InTouch to expand into new, mainly Thai-owned, businesses.
Temasek controls InTouch via two affiliates, Aspen Holdings and Cedar Holdings. Now Cedar holds only 13.3 per cent of InTouch, while Aspen's holdings remain at 41.62 per cent.
Temasek took over Shin Corp from the Shinawatra family for Bt73 billion in 2006, then raised its stake from 49.6 per cent to more than 96 per cent.
InTouch's stock closed yesterday down 2.61 per cent to Bt65.25 per share. The Cedar sale appeared to affect the Stock Exchange of Thailand; the SET Index closed at 1405.99, down 17.47 points.
Sopon Asawanuchit, executive vice president of Siam Commercial Bank, said SCB, together with Credit Suisse and Morgan Stanley, advised Cedar to sell the shares to tone down the risk of InTouch being viewed as a foreign-dominated firm. SCB owns 5 per cent of Cedar.
There were 25 big lot sales yesterday, each at Bt63.25 per share. The first lot was for 60 million shares.
A telecom analyst said Temasek was trying gradually to lower its profile in InTouch. The telecommunication and foreign-business laws limit foreign ownership of a telecom at 49 per cent.
The Department of Special Investigation has yet to complete its investigation into whether Kularb Kaew was a nominee of Temasek when it took over Shin Corp in 2006. Kularb Kaew owns 45.22 per cent of Cedar Holdings.
InTouch informed the SET yesterday that Cedar sold 330 million InTouch shares, or 10.3 per cent of the total. About 20 per cent of the sold shares went to Thai investors and the rest to Thai NVDR Co, a trustee. Cedar was left with 428 million shares, or 13.3 per cent.
InTouch said it asked Aspen whether it also intended to sell its shares in the company and Aspen replied that it hac no immediate plan to do so and remained confident in the business and management of the company.
InTouch is the holding company for Thailand's largest cellular operator Advanced Info Service and sole satellite operator Thaicom.
InTouch is also interested in getting into broadcasting businesses licensed by the National Broadcasting and Telecommunications Commission. Only businesses with at least 75-per-cent Thai ownership will be able to apply for upcoming licences to provide radio and television service commercially.
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Article source: http://www.thethailandlinks.com/2013/01/11/temasek-slashes-stake-in-intouch/
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