Cedar had already raised its capital to Bt8 billion from the Bt400 million it had when it was established on January 19, according to its articles of association, but SCB refrained from fully using its right to increase its share proportion.

The stake of another of Cedar's major shareholders, Kularb Kaew, rose to 43.16 per cent from 41.1 per cent, while that of Cypress Holdings dropped to 46.55 per cent from 48.97 per cent after the Cedar recapitalisation.

Wealthy Thai businessman Datuk Surin Upatkoon is the new major shareholder of Kularb Kaew after he recently acquired capital-increase shares of Kularb Kaew, representing 68 per cent of its paid-up capital.

His entry into Kularb Kaew suggests that Surin now indirectly holds 17.64 per cent in Shin through his stake in Kularb Kaew and through Kularb Kaew's shareholding in Cedar.

An industry source speculated that Surin would soon directly acquire a stake in Shin.

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

Singapore's state investment arm Temasek Holdings, through its Cedar and Aspen Holdings, acquired a 49.6-per-cent stake in Shin from the family of Prime Minister Thaksin Shinawatra and the Damapong family in January.

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.

In a related matter, a source at the Business Development Department said yesterday that the agency was investigating whether Surin is acting as a nominee in Kularb Kaew.