Thailand 'unlikely to take back Shin Corp'

The Sunday Times, April 1, 2007
Finance minister says such a move would send the wrong message to foreign investors



BANGKOK - THAI Finance Minister Chalongphob Sussangkarn has said that Thailand should not and likely will not take back telecommunications giant Shin Corp from Singapore's state investment company Temasek Holdings.

In January last year, a consortium led by Temasek bought a controlling stake in Shin Corp for US$1.9 billion (S$2.9 billion) from the family of then prime minister Thaksin Shinawatra, a move that helped precipitate a coup as well as his ouster last September.

Mr Thaksin's critics claimed the sale endangered national security because it placed strategic assets, including Thailand's only communications satellites, in the hands of foreigners.

There were also suggestions that the sale was structured in a way that breached financial laws on foreign ownership of Thai companies.

'The legal investigation aside, we should not take Shin back or seize its assets. It will send a wrong message to foreign investors,' Mr Chalongphob was quoted as saying on Friday in an interview with Dow Jones Newswires.

National sentiment against Shin's sale to Temasek was fanned by the military after it staged the coup, with generals suggesting that Temasek's ownership of the satellites - as well as of mobile phone service provider AIS - would allow Singapore to spy on Thailand.

'The two sides must find a middle ground,' Mr Chalongphob said. 'Temasek understanding the feelings of the Thai people, and we not pushing the case to extremes.'

The allegation that financial laws may have been broken gave rise to suggestions that Shin's assets simply be seized by Thailand.

Others suggested buying the company back.

Thai Information and Communications Technology Minister Sittichai Pokaiudom, who is overseeing the case, told Dow Jones Newswires in February that he was convinced that Temasek broke Thailand's foreign ownership laws and that Shin may soon return to Thai control.

But Mr Chalongphob struck a more conciliatory tone, indicating a desire at the most senior levels of the Thai government to ease tensions between the kingdom and Singapore, and to resolve the Shin row without further damaging Thailand's post-coup reputation with foreign investors.

He said that strong anti-Singapore comments by various government officials were made in the 'heat of the moment' and as the government was considering its policy on the Shin Corp issue.

AP