Temasek affiliate part-exits Shin Corp holding

The base offer size was 169 million shares and there was an option, which was exercised, to increase the size by 84.5 million shares, Reuters reported. The shares were apparently well oversubscribed and the deal closed in two hours, with 60% of the shares offered to Thai investors and the remainder to international investors.

The sale, which was widely expected, brings Shin. Corp closer to the Thai stock exchange requirement that listed companies have a minimum free float of 15%. Cedar now holds 46.44% of the company, down from 54.43%, while Aspen Holdings, which is wholly owned by Temasek, owns 41.68%. Aspen told the stock exchange that it has no plans to reduce its stake at present.

The selling price is a significant discount on the THB49.15 per share that the Temasek-linked units paid to the family of Thaksin Shinawatra in 2006 for its controlling stake, Reuters reported. That acquisition triggered events that led to Thaksin's removal as Thai prime minister by the military later the same year.

Thaksin now lives in self-exile but last month his sister, Yingluck Shinawatra, led the Puea Thai Party to a landslide general election victory and has since been appointed prime minister.

Shin Corp. owns nearly 43% of Advanced Info Service, Thailand's largest mobile phone operator by subscribers, and over 41% of Thaicom, the country's only satellite operator.

In early July, Temasek sold down its holdings in Bank of China and China Construction Bank, raising $2.4 billion and $1.2 billion, respectively. The sales were seen in the context of Temasek wanting to scale back its exposure to financial services, which accounted for 36% of total assets at the end of March. Recent investments have focused more on energy and natural resources.

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• Topics
• Southeast Asia
• Exits
• Media
• Temasek Holdings