A unit of Singapore state-investment firm Temasek has sold a 7.9% stake in Thailand-based telecom conglomerate Shin Corp.
Cedar sold 253.5 million shares for a reported Bt36 (US$1.20) each, allowing it to raise about Bt9.1bn (US$305m). Shin’s share…
A unit of Singapore state-investment firm Temasek has sold a 7.9% stake in Thailand-based telecom conglomerate Shin Corp.
Cedar sold 253.5 million shares for a reported Bt36 (US$1.20) each, allowing it to raise about Bt9.1bn (US$305m). Shin’s share price was down at Bt37.75 (US$1.26) in late afternoon in Thailand on 18 August.
“Approximately 60% of the shares are sold to Thai investors and the remaining is sold to Thai NVDR Co,” Shin said in a statement. Thai NVDR, which is responsible for issuing and selling non-voting depository receipts (NVDRs) to investors, is majority-owned by the Stock Exchange of Thailand.
Cedar remains, however, Shin’s largest shareholder with a 46.44% stake. Morgan Stanley handled the transaction, according to Dow Jones.
Before today’s transaction, Temasek owned about 96% of Shin through Cedar and Aspen Holdings.
In the statement released on 18 August, Shin wrote: “Aspen has informed the company that it has no immediate plan to sell its shares in the company and remains confident in the business and management of the company.”
According to Reuters the sale is aimed at bringing the free float closer to the legal requirement of 15%, about a month after the Pheu Thai Party, led by Yingluck Shinawatra, won the general election.
Temasek bought Shin Corporation in January 2006 from Thaksin Shinawatra, the ex-Prime Minister and brother of Yingluck, who was overthrown in a military coup.
It is believed that the transaction precipitated his departure after he was accused of selling a company of national importance to a foreign firm.
