(Bangkok Post via NewsEdge) Temasek Holdings will postpone a plan to sell shares in Shin 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 this month to reduce its aggregate holding in the telecom conglomerate to 49%, the source said.
Temasek owns more than 96% of Shin, whose stock has plunged nearly 40% to 30 baht ($0.81) from the 49.25 baht ($1.35) a share the Singaporean firm paid to the family of ousted Prime Minister Thaksin Shinawatra.
The government installed following the September 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 centers on Kularb Kaew, a holding company set up as part of Temasek's takeover of Shin.
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 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.
© 2006 Bangkok Post
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