Published on January 13, 2006

Uncertainty and curiosity are rife among executives at the Shin Corp group of companies due to the many news reports and rumours about plans by the family of Prime Minister Thaksin Shinawatra to sell its interest in the huge corporation.

No less disconcerting to them has been the lack of official comment from the Shinawatra family.

Their curiosity reached its zenith this week when, for the first time, some of the AIS management team asked top executives – including AIS chief executive Somprasong Boonyachai and its president Yingluck Shinawatra – about the reported share disposal.

“They asked Somprasong and Yingluck during a management meeting this week if they could tell them the truth about what is really going on,” said a source close to the Shin group.

But, they were left without an answer. The source said Somprasong and Yingluck told them that even they did not know what was going on and that the family has not said anything about the matter.

Yingluck, who is Thaksin’s sister, told them she had no idea what was going on and denied a rumour that she plans to resign from AIS and move to Shin after the share sale.

“Some Shin group executives are feeling concerned about their future and that of their companies if the premier’s family leaves the group,” the source said.

Some AIS executives even raised concerns over be able to continue to proudly proclaim to the public that AIS is a Thai company if Shin were to be controlled by a foreign firm, the source added.

Local newspapers have reported that the family plans to divest its 49.6 per cent share in Shin to a foreign telecom giant, and speculation has focused on Singapore Telecom.

According to the Financial Times, people close to the situation said that over the past few months major telecom companies, including Japan’s NTT DoCoMo, China Mobile and SingTel have been approached with offers to buy some or all of the family’s shares in Shin.

The Financial Times reported that both NTT DoCoMo and China Mobile had turned down the deal because of concerns over the price, leaving SingTel as the most likely suitor.

The prime minister has kept brushing aside media questions about the reported share divestment.

A Shin group executive, who asked for anonymity, said that after many years with the group, this is the first time he feels totally befuddled. His colleagues believe the reports about the share disposal, but they think the deal has yet to be closed.

Thaksin is known for his habit of devising a plan on his own and, having made up his mind, ordering his staff to implement it. He uses the same tactics with his Cabinet.

“All you can do is just wait for his orders,” said the Shin group source.

Questions about the future of the Shin group have not been limited to AIS executives. Senior executives of other Shin subsidiaries who are anxious to learn the truth have recently been asking their bosses to explain what is going on. They too have received no answers.

A telecom industry observer summed up the corporate confusion by commenting that a bewildered AIS staff would be caught off guard if one of its rivals were to suddenly come out with a hot new marketing plan. There are few more fiercely competitive industries than the mobile phone sector.

Telecom Reporters

The Nation

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