Surin is the new major shareholder of Kularb Kaew, which is among the local allies of Singapore's Temasek Holdings, which now controls Shin.

The source said that Shin's board at the end of this month was expected to appoint Surin, either to replace one of its existing seven board members or be its eighth member.

Later, the board will discuss the new Shin business structure, which currently includes many high-profile companies.

The source said that Surin, a Thai national who is also managing director of Malaysia's Multi-Purpose Holdings, is one of the five-richest businessmen in Malaysia. He has been a virtual unknown in Thailand until his name surfaced this week in connection with the Shin deal.

"He was approached by Temasek to hold a share in Kularb Kaew and he has been interested in investing in business in Thailand," the source added.

The entry of Surin also fits with Temasek's efforts to pass Shin off as a Thai-run business. According to the articles of association of Kularb Kaew, Surin acquired a 68-per-cent stake in the company on March 10.

The source said that Surin spent around Bt10 billion in the deal.

He  declined to elaborate.

One Shin shareholder, Cedar Holdings, raised its capital to Bt8 billion on March 13 from the Bt400 million it had when it was established on January 19, according to its articles of association. Another Shin shareholder, Aspen Holdings, increased its capital to Bt4 billion on March 13, from Bt100,000.

There was a report that one Cedar shareholder, Siam Commercial Bank, did not participate in Cedar's recent capitalisation, and that only the remaining two shareholders, Cypress Holdings (owned by Temesek) and Kularb Kaew did.

Cypress also increased its capital to Bt4 billion from Bt100,000 on March 13.

Kularb Kaew raised its capital to Bt4 billion on March 13, up from Bt164 million last month and Bt100,000 when it was establishment on January 19.

The Surin share acquisition in Kularb Kaew has diluted Cypress' share of Kularb Kaew to 27.75 per cent from 49 per cent and the combined share of Pong Sarasin and Suppadet Poonpipat to 4.25 per cent from a combined 50 per cent.

The source said that Surin fit Temasek's requirements for a new local ally

because he holds Thai nationality,

is wealthy, yet keeps a low profile.

He has also dared to get involved in Shin, the sale of which has attracted protests by activist groups.

They regard the Shin-Temasek deal as a pawning off of national assets to foreigners, particularly the company's television and satellite operations. "Also, he is not a nominee for Temasek in Shin." the source added.

The entry of Surin also emphasises that Kularb Kaew is a Thai-controlled company.

The Singapore state investment arm Temasek, through its controlled subsidiaries Cedar and Aspen, acquired a combined 49.6-per-cent stake in Shin from Prime Minister Thaksin Shinawatra's family and the Damapong family in January in a deal worth Bt73.3 billion.

After the tender offer for the remaining Shin shares ended last week, Cedar's stake in Shin increased from 33.36 per cent to 51.98 per cent, while that of Aspen jumped to 44.14 per cent from 15.85 per cent.

This lifted Temasek's indirect stake in Shin via Cedar and Aspen to a 96.12 per cent.

Additionally, Kularb Kaew appointed two new directors on March 13, including Surin, and Suteera Uppaputthangkul, managing director of Thailand's PN Textiles.

Pong Sarasin also resigned as a board member of Kularb Kaew last week but he remains Shin's chairman.

The Shin share price yesterday closed at Bt41, down from Bt45.25, while that of its flagship cellular operator Advanced Info Service closed at Bt99, up from Bt95.

Telecom Reporters

The Nation

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SSO sells stock, bags a Bt456m gain

The Social Security Office (SSO) yesterday revealed that it had made a capital gain of Bt456 million by selling Shin Corp shares to Singapore's Temasek Holdings via its tender offering.

Separately, the Thai labour reconciliation committee yesterday complained that investment in Shin shares was unsuitable given Prime Minister Thaksin Shinawatra's Shin links.

Somchai Wongswasdi, permanent secretary of the Labour Ministry, urged fairness in the matter since the SSO was not involved in politics.

The SSO had invested in Shin for some time. According to the Stock Exchange of Thailand, the office held 22.8 million shares in Shin, ranking it the 19th-largest stakeholder as of August 26 last year.

Thanachon explained that the SSO had acquired Shin shares since 2003, accumulating a total of 32 million shares at an average of Bt35 each. He added that besides such stocks, the office had a policy to invest in other stocks such as Siam Cement and PTT.

"The office disposed of the number of Shin Corp shares on March 13 because the price offered at Bt49.25 each was very high," said Thanachon.

Thai labour reconciliation committee president Wilaiwarn Sae Tia said the committee would bring this issue to the campaign stage of the People's Alliance for Democracy, which is at the forefront of the anti-Thaksin protests. - The Nation