Thailand says talking to Singapore on satellite buy-back

The Straits Times, February 20, 2007


BANGKOK - Thailand's army-appointed government has held talks on buying back satellites sold by ousted Prime Minister Thaksin Shinawatra's family to Singapore's Temasek Holdings, and will poll the nation and allow public opinion to decide whether the government should seek the buy-back, Communications Minister Sitthichai Pookaiyaudom said on Tuesday.

'There have been talks between Thai officials and Temasek, but it's very informal. I think if Temasek gets a good price, it will sell Shin Satellite,' he told reporters.

Mr Sitthichai said his officials had estimated the value of Shin Satellite, a unit of Shin Corp which was sold to Temasek Holdings for US$3.8 billion (S$5.8 billion) in 2006, at 5 to 7 baht per share.

'We need to talk more with Temasek. It's not final yet,' Mr Sitthichai said without giving more details of the negotiations.

Shin Satellite shares were up 5.6 per cent at 7.50 baht per share on Tuesday and the figures Mr Sitthichai quoted would mean Thailand having to pay up to 10 billion baht (S$429 million) for the company.

It operates four satellites - another was de-commissioned last year - which coup leader Sonthi Boonyaratglin says he wants back as a matter of national security.

Gen Sonthi has accused Singapore of using Shin assets, including Thailand's biggest mobile phone operator AIS, to monitor military phone calls. AIS and Shin Satellite have denied eavesdropping. Singapore has denied any spying.

Gen Sonthi on Friday described the telecom satellites as 'national assets' that should revert back to Thai control.

National poll on satellites buy-back
Thailand said it will poll the nation and allow public opinion to decide whether the government should seek to buy back the nation's satellite operator now controlled by Temasek.

If more than 75 per cent of those surveyed back the idea, Thailand will make an offer to buy Temasek's shares in Shin Satellite, said Mr Sitthichai.

'This issue is very delicate and affects public sentiment. We have to be very careful in how we proceed,' he said.

Thailand's National Statistical Office will have one month to conduct the poll and submit the results to the government, the minister said.

Meanwhile, the government will continue to investigate whether Temasek broke foreign ownership laws when it bought Shin Corp.

The minister said on Monday that if the deal were declared illegal, the government could revoke ShinSat's concession to operate the four Thai government-owned satellites. -- REUTERS, AFP