(Bangkok Post via NewsEdge) Executives of Siam Commercial Bank and Cedar Holdings will be called to testify on September 18 about Temasek Holdings' buyout of the telecom giant Shin.
Senator Chermsak Pinthong, who has alleged that the Temasek deal violated foreign shareholding laws, will also be asked to testify before a high-level investigatory committee.
Yanyong Phuangrach, the deputy permanent secretary at the Commerce Ministry and chairman of the investigative committee, said other parties would also be asked to give information.
Authorities are investigating whether Temasek Holdings, the investment arm of the Singapore government, violated the Foreign Business Act and telecom laws by exceeding foreign shareholding limits after its takeover of Shin.
The transaction was structured through several holding companies to avoid violating the 49% foreign shareholding limit.
According to the Stock Exchange of Thailand, as of April 7, Shin was 44% owned by Temasek holding company Aspen Holdings, and 52% held by Cedar Holdings.
Cedar is 45% owned by Kularb Kaew, 10% by Siam Commercial Bank with the rest Temasek. Kularb Kaew is 68% owned by Surin Upatkoon, a Thai-Chinese businessman, with Temasek the rest.
Representatives from the Democrat Party and the Democracy Confederation have both offered further information.
Weng Tochirakarn, the chairman of the Democracy Confederation, insisted that the Shin deal was 'unusual,' pointing to the fact that even though Kularb Kaew has been declared a Thai entity, originally Thais held only 5.1% of the voting rights.
© 2006 Bangkok Post
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