US$2-BILLION SHIN CORP SALE. Done deal!

The Nation, Published on January 13, 2006

Thaksin sealed deal with Temasek on New Year trip to city-state: source. SingaporeтАЩs state-run investment agency Temasek is set to take over Shin Corp by buying out the Shinawatra familyтАЩs 40-per-cent stake worth Bt80 billion, a Shin source said yesterday. The deal was cemented on the holiday visit made by Prime Minister Thaksin Shinawatra and his family to the city-state from New YearтАЩs Day to January 4.

Two days later, on January 6, the two sides signed a letter of intent which would see the Shinawatra and Damaphong families give up their combined 40-per-cent holding. Payment for the shares would be made in two transactions next week, the source said. There has been intense speculation over the past two weeks about the Shinawatra familyтАЩs alleged plan to get out of Shin in order to reduce political pressure from charges of conflict of interest. The PMтАЩs family stands to pocket a handsome premium from selling Shin, which controls Advanced Info Service (AIS), the countryтАЩs leading mobile-phone operator, as well as Thai AirAsia, Capital OK and iTV.

The takeover price of US$2 billion means that Temasek will be paying Bt69 for Shin shares, which closed at Bt44.50, down Bt0.25 yesterday. AIS lost Bt3 to Bt109. The local market underwent a technical correction after rallying strongly since the beginning of the year, buoyed by foreign buying.

Temasek is likely to allow the current management at Shin to remain in control.

тАЬKhun Thaksin has been negotiating with the investors from Singapore since the beginning of last year. The sell-off of Shin will help ease political pressure. Besides, the telecom market has reached saturation level. It is better to bail out of the business at its peak rather than wait for the price to fall further,тАЭ the source said.

тАЬThe 3G [third-generation cellular service] is only a new technology. Investing in 3G would not help improve the margins of the company in any significant way, but it would further complicate the political problems.тАЭ

Temasek controls Singapore Telecom, a 21.4-per-cent strategic partner of AIS, the flagship of the Shin conglomerate. Earlier, reports suggested that SingTel would be the buyer.

The acquisition would boost Temasek and SingTelтАЩs control of Shin to more than 60 per cent, but they are only interested in AISтАЩ mobile phone business, the source said. So the Shinawatra family would be given a buyback option for the TV station, consumer-finance company and budget airline.

An investment banker in Singapore said SingTel was definitely interested in Shin but would have to weigh political fall-out from the takeover.

He said it was unlikely the Shinawatra family would completely let go of AIS, which has been a big money-spinner.

тАЬIf theyтАЩre still in politics, they should have a cash-cow company to help raise funds for politics,тАЭ he added.

PLOY CHITSOMBOON
Thai shares gained 0.36% yesterday, with shares of Shin Corp dominating trade in light of ongoing rumours that Prime Minister Thaksin Shinawatra would sell his stake in the telecom giant. On Thursday, Mr Thaksin denied reports that he had met with officials of Temasek Holding over the New Year's holiday to close a share sale.


''They can write whatever they want. They can make up the story as they wish. I didn't meet them,'' he said. The Nation, quoting unidentified sources, said Temasek, the investment arm of the Singaporean government, would pay 69 baht per share in the -billion deal. Shin, 49% controlled by the Shinawatra and Damapong families, also issued a statement yesterday to the SET denying any knowledge of a shareholding change. Market rumours have been rife that Mr Thaksin was set to cash out. Shin shares closed yesterday at 45.25 baht, up 75 satang, in trade worth 1.7 billion baht, with prices hitting a one-year high at 46.25 before falling in afternoon trade.

The SET index closed at 755.72 points, up 2.68, in trade worth 29.5 billion baht. Arunrat Jiwangkul, an analyst with TSEC Securities, said 48 baht was a reasonable price for Shin. ''But there's no clear information on anything right now. We're seeing some market consolidation, with Thursday's 1.4% [SET] loss coming after a 7.1% gain over the previous seven days.''

Kavee Chukitkasem, an analyst at Capital Nomura Securities, said some foreign brokers had recommended that investors cut their holdings in banks but this would only affect the market in the short term. ''Overall, most brokers are still bullish on the Thai market,'' he said.

The Nation, 14th January 2006

SHIN TAKEOVER: Thaksin: I went there to shop
Published on Jan 14 , 2006

Premier remains mum but impish as rumours fly about a done deal in Singapore. Prime Minister Thak-sin Shinawatra claimed yesterday he took his family to Singapore during the New Year only to shop, amid intensifying speculation that his family and allies were selling their stakes in Shin Corp Plc to Singapore's Temasak Holdings. Latest reports on such a deal have sent the company's shares rising.

Thaksin said he had not held talks with Temasek while in Singapore early this month, as reported. "People can write what they want, but I did not meet or talk business with anyone. I spent my time shopping, at McDonald's restaurants and at hotels," he told reporters. The premier and his family spent the New Year holiday in Singapore until January 4.

However, Thaksin did not deny outright that his family would sell its stake. When asked about this, he gave reporters a mischievous smile. Rumours about the biggest take-over in Thai history have affected Shin Corp share prices, and critics have frowned upon the stock market authorities for their conspicuous silence. Thaksin's sister Yingluck, president of Shin's flagship business Advanced Info Service Plc, yesterday also declined to comment. "I don't know any details of that," she said, without flatly denying the news.

Meanwhile, after flatly denying the takeover rumours in two filings to the Stock Exchange of Thailand last month, Shin said in filing yesterday simply that it had not received any information from the major shareholder concerning the report that its major shareholder would dispose of its shares to Singapore's Temasek......

[Hmmm]

PM's pants on fire ?

Shinawatras likely to hold 10% of SingTel
The Nation, Published on January 17, 2006

Temasek to hold 49.61% of Shin; Thaksin hopes move will put an end to conflict of interest allegations. Once the take-over deal for Shin Corp is completed, the Shinawatra family is likely to hold a 10-per-cent stake in Singapore Telecom, so that a chunk of the familyтАЩs assets are parked offshore. тАЬThis is a hedge against political risk,тАЭ said a financial source.

Thaksin wants to put an end to charges of conflict of interest by parting with the holding company of his telecom empire.

According to the financial source, there are two parts to the take-over deal for Shin Corp. Temasek Holdings, the investment agency of Singapore, is likely to buy 49.61 per cent of Shin Corp from the holdings of Prime Minister Thaksin ShinawatraтАЩs family and the Damapong family. The source said initial discussions about the transaction price ranged from Bt45 to Bt48 a share. The latest information, however, is that both parties have agreed to a deal at Bt49.50 a share.
In selling the stake, the family is not subject to transaction taxes. They are weighing two options for transferring the shares and money тАУ share swaps and big-lot transactions.

An informed investment banker said the Shinawatras would likely prefer swapping their shares with TemasekтАЩs shares in SingTel. Under Singapore law, such transactions would be not be subjected to tax......"

Full story The Nation (http://www.nationmultimedia.com/2006/01/17/national/index.php?news=national_19673079.html)

Shinawatras likely to hold 10% of SingTel
The Nation, Published on January 17, 2006

Temasek to hold 49.61% of Shin; Thaksin hopes move will put an end to conflict of interest allegations. Once the take-over deal for Shin Corp is completed, the Shinawatra family is likely to hold a 10-per-cent stake in Singapore Telecom, so that a chunk of the familyтАЩs assets are parked offshore. тАЬThis is a hedge against political risk,тАЭ said a financial source.

Thaksin wants to put an end to charges of conflict of interest by parting with the holding company of his telecom empire.

According to the financial source, there are two parts to the take-over deal for Shin Corp. Temasek Holdings, the investment agency of Singapore, is likely to buy 49.61 per cent of Shin Corp from the holdings of Prime Minister Thaksin ShinawatraтАЩs family and the Damapong family. The source said initial discussions about the transaction price ranged from Bt45 to Bt48 a share. The latest information, however, is that both parties have agreed to a deal at Bt49.50 a share.
In selling the stake, the family is not subject to transaction taxes. They are weighing two options for transferring the shares and money тАУ share swaps and big-lot transactions.

An informed investment banker said the Shinawatras would likely prefer swapping their shares with TemasekтАЩs shares in SingTel. Under Singapore law, such transactions would be not be subjected to tax......"

Full story The Nation (http://www.nationmultimedia.com/2006/01/17/national/index.php?news=national_19673079.html)

THAILAND: Shin Corp 'expected to announce Temasek deal'
Thaksin family will announce the sale of its shares in Shin Corp to Temasek Holding

Straits Times
Thursday, January 19, 2006
Bangkok --- Thailand's Shin Corp is expected to file a statement to the Stock Exchange of Thailand tomorrow to announce its stake sale to Temasek Holdings, reported Dow Jones (DJ) Newswires, quoting a Thai newspaper.

The Prachachat Business newspaper, quoting sources close to Thai Prime Minister Thaksin Shinawatra, said yesterday that the sale will involve the entire 49.61 per cent stake, owned by the premier's family, to Temasek. The deal is expected to be worth more than 70 billion baht (S$2.9 billion), according to the paper.

DJ Newswires, citing a report in the Matichon newspaper, also said that former Siam Cement president Chumpol NaLamlieng has been approached by Temasek to head Shin Corp.

He is currently the chairman of SingTel.

===========================

Tha Chairman of The Bank of Thailand has confirmed that the reason for the strength of the baht is partly due to the influx of funds into Thailand related to this sale.

===========================

HISTORIC TAKEOVER: Temasek boss flies in to seal Shin deal
The Nation, Published on January 20, 2006

SET to be advised today of Bt2.5-trln buyout by SтАЩpore agency; BOT notes huge capital inflow. The chief executive of SingaporeтАЩs Temasek Holdings, Ho Ching, is to appear at a news conference on Monday to announce the takeover of Shin Corp Plc, according to a telecom industry source. Ho made a one-day trip to Thailand yesterday to add a final touch to her organisationтАЩs imminent takeover of the Thai conglomerate. Despite her Monday date with the media, the deal is expected to be notified to the Stock Exchange of Thailand today. A source in Singapore said she had travelled to Bangkok yesterday and returned on the same day. Regarded as one of AsiaтАЩs most influential women, Ho is the wife of Singapore Prime Minister Lee Hsien Loong. She is in charge of Temasek, which is the investment agency of the Singapore government. According to Temasek Review 2005, the company commanded an investment portfolio totalling S$103 billion (Bt2.47 trillion) last year, up 15 per cent from the previous year.

Temasek plans to acquire 49.6 per cent of Shin CorpтАЩs shares from the Shinawatra and Damapong families, making the Bt76-billion takeover the largest deal in Thai corporate history.
Sources said Temasek and Shin Corp have agreed on a final price of about Bt51 per share. Shin Corp has 3 billion outstanding shares.

The recent strengthening of the baht against the US dollar has been attributed to the huge amount of foreign capital flowing into Thailand ahead of the takeover transaction, the central bank said yesterday. Bank of Thailand Governor MR Pridiyathorn Devakula said the bahtтАЩs appreciation to a nine-month high of Bt39.4 to the dollar was due mainly to the inflow of foreign capital for the purchase of Shin shares.

It is for the purchase of Shin shares, he said. тАЬThere was a broker [associated with the Shin deal] selling [foreign] currency in the market. I just learned about it today, but I donтАЩt know how much money is involved. I donтАЩt know how many shares theyтАЩre going to sell.тАЭ........

more on http://www.nationmultimedia.com/2006/01 ... 04296.html (http://www.nationmultimedia.com/2006/01/20/headlines/index.php?news=headlines_19704296.html)

Only today they have reported this news - read it first on Swatdee!! ('')

Singapore's Temasek to buy out Shin Corp
Shin Corp, the telecom giant founded by Prime Minister Thaksin Shinawatra, is due to announce today a take-over by Singapore's Temasek Holdings. Sources say Temasek will buy out the 49.6% of Shin held by Mr Thaksin's family at less than 50 baht per share. At an estimated 70.8 billion baht it would be the largest acquisition ever in the Thai market.

PM Thaksin's Family Sells Shin Corp

Prime Minister Thaksin Shinawatra said Monday his family sold their stake in Shin Corp., which controls Thailand's biggest mobile-phone operator Advanced Info Service, to a fund, bowing to public pressure about conflict of interest.

''It's the decision made by my son and daughters who want their dad to remain in politics happily.''

But the prime minister became frustrated when reporters asked if the timing of the share sale was related to the amendment of the telecommunication operation act. ``They are not related at all. You asked for a trouble,'' he replied.

The act has just been amended to allow an increase in foreigners' holding in a Thai telecommunication company from 25% to less than 50% and to lift the requirement that three quarters of directors have to be Thai. The amendment was published in the royal gazette on January 20 and took effect January 23.

In its statement to the Stock Exchange of Thailand, Shin Corp said Pintongta Shinawatra, Bhanapot Damapong, Phantongtae Shinawatra, Yingluck Shinawatra and Busaba Damapong had sold their shares in Shin Corp to Temasek Holdings.

The shareholders sold the combined stake of 1.488 billion shares or 49.60 per cent Monday at the price of 49.25 baht per share, to Cedar Holdings Ltd and Aspen Holdings Ltd. Both are under Temasek Holdings. The deal is worth 73.7 billion baht (1.9 billion dollars).....

http://www.bangkokpost.net/breaking_new ... p?id=75004 (http://www.bangkokpost.net/breaking_news/breakingnews.php?id=75004)