(Bangkok Post via NewsEdge) Singapore's Temasek Holdings has suffered a paper loss of 41% since it acquired telecom giant Shin earlier this year.
Shares of Shin on the SET fell 0.85% in thin trade to close at 29 baht ($0.77), well off the 49.25 baht ($1.31) per share paid by Temasek in its acquisition in January.
Other firms in the Shin group also lost ground, with TV broadcaster iTV dropping 2.82% to 2.76 baht ($0.073), mobile operator Advanced Info Service off 2.29% to 85.5 baht ($2.28) and Shin Satellite down 2.08% to 7.05 baht ($0.18).
Investors have sold off stocks related to deposed Prime Minister Thaksin Shinawatra since the September 19 military takeover and the announcement that an asset scrutiny committee would examine the legitimacy of the Temasek deal.
The decision by the Supreme Administrative Court last Thursday to accept a petition charging state agencies with negligence in allowing Shin and its associated companies to maintain their state concessions following the sale further dampened sentiment over the group.
Analysts have recommended that investors avoid Shin, AIS and other related stocks.
A police investigation into the status of Kularb Kaew, a company set up by Temasek to manage its shareholdings in Shin, and whether the 49% foreign limit was violated could result in severe fines, jail sentences and corporate dissolution if it is found that the Foreign Business Act was violated.
Temasek holds 44% of Shin directly through Aspen Holdings, with another 52% of Shin controlled by Cedar Holdings.
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