SINGAPORE: Temasek, partners complete Shin Corp takeover

Sale of Thailand's biggest telecom leads to political unrest

Straits Times
Wednesday, March 15, 2006

By Bryan Lee

Temasek Holdings and its Thai partners have completed a US$3.8 billion (S$6.2 billion) takeover of Shin Corp -- a deal that has stirred up a maelstrom of political unrest in Thailand, including a degree of anti-Singapore sentiment.

The Singapore investment firm said yesterday that together with Siam Commercial Bank and other Thai investors, it now owns a 96 per cent stake in Shin Corp, Thailand's biggest telecoms group.

But that stake is likely to be reduced as it intends to keep Shin Corp listed on the country's bourse.

It is in talks with several potential investors to help ensure that at least 15 per cent -- the minimum set by Thai corporate laws -- of Shin Corp's total stock is available for public trading.

Temasek and its partners first bought into Shin Corp in January with a 49.6 per cent stake sold by the family of Thai Prime Minister Thaksin Shinawatra.

This sparked a mandatory general offer last month for the rest of the company.

The takeover deal has drawn much flak across the country as critics regard the deal, the biggest foreign buy-out in the country, as a sell-out of vital national assets, given the satellites and national phone networks owned by Shin Corp.

This soon escalated into anti-Thaksin street protests. Singapore was not spared, with about 3,000 demonstrators protesting outside the Singapore's Bangkok Embassy last week as well as calls to boycott Singapore companies.

Shin Corp is Thailand's seventh-largest listed firm and owns a number of subsidiaries and affiliates ranging from a budget airline to consumer finance businesses.

'We and our Thai partners thank the Shin Corp shareholders for their overwhelming response which has contributed to the successful completion of the tender offer,' said Temasek investments managing director S. Iswaran.

'The investment in Shin is a commercial decision, reflecting Temasek's optimism for the long term prospects of Thailand and its dynamic communications sector.'

Mr Iswaran said that Temasek intends to keep Shin Corp as a listed company and has one year to ensure that free float requirements are met.

Meanwhile, in Bangkok, respected historian Charnvit Kasetsiri urged protesters not to be prejudiced against Singapore and Temasek, reported the Bangkok Post.

Singaporean people remain friendly and besides 'we also have problems with our own image', the former Thammasat University rector told a seminar on Monday.

He added that Thai leaders had long considered Singapore a symbol of and a gateway to modernisation.

Date Posted: 3/15/2006