Globlex Holding Management Plc is in talks with three foreign investors with plans to make one of them its new partner.

All three potential partners have already visited the company and observed its working procedures, to help determine whether they could work together.

"Negotiations have not yet reached a conclusion. The Koohapremkit family is willing to reduce its holdings, and the family might sell a significant number of shares through private placement if foreign investor offer attractive conditions," Natthawut Khemayotin, the company's managing director, told reporters yesterday.

Kiratipong Koohapremkit sold a 3.76-per-cent stake, leaving his holding at 9.86 in the company, according to Securities and Exchange Commission data released last Wednesday.

He said he had not discussed the share sale with the rest of the family but would meet with members soon to sound them out on which direction to take.

"I believe such a sale would only be profitable," Kiratipong said.

The Koohapremkit family founded Globlex Holding Management and is the major shareholder. The holding firm is sole owner of Globlex Securities.

 He said that taking on a foreign partner would open up business opportunities for Globlex Securities, as relying solely on the domestic market and local retail investors was not sufficient, while competition to attract institutional customers had intensified recently.

"The company feels expanding into new markets would be easier than competing for a share of the existing one. With this strategy, we estimate that Globlex institutional investors' ratio would increase from 10 per cent now to 30 per cent, while retail investors' ratio would fall from 90 per cent now to 70 per cent," said Natthawut.

Globlex Securities' share of the brokerage market has dropped below 3 per cent, which the

company blamed on the recent political turmoil. However, its market share should bounce back above 3 per cent by the end of the year once the political uncertainty wanes.

Natthawut said Globlex would encourage its marketing staff to seek more customers.

Siriporn Chanjindamanee

The Nation