CAPITAL OK
New shareholding structure
The flotation of new capital-increase shares by financial-services provider Capital OK, a joint venture between Shin Corp Ltd and Singapore's DBS Bank, saw Shin's stake rise from 60 per cent to 75.31 per cent, while DBS's share dropped from 40 per cent to 24.69 per cent.
An informed source said DBS Bank decided not to exercise its right in Capital OK's new shares, because it no longer wanted to focus on providing consumer loans, which it considered unprofitable. Shin yesterday informed the Stock Exchange of Thailand (SET) that Capital OK had increased its capital by Bt1.55 billion, from Bt2.5 billion to Bt4.05 billion, with the paid-up capital on Wednesday. The funds from the capital increase will be used for working capital and business expansion. DBS Bank declined the right to buy its share of Capital OK's shares - worth a total of Bt620 million - giving Shin Corp the right to buy its shares. Shin closed yesterday at Bt29.25, unchanged from the previous day's trading. However, Shin shares did take a sharp dive following the September 19 coup, because the stock is considered politically related. The company also experienced a plunge on March 6, when its stock fell 40 per cent from Bt48.75 a share. The flotation is classified by the SET regulations as a connected transaction between listed companies, because 28 per cent of DBS is held directly and indirectly by Temasek Holding Pte Ltd, which also indirectly holds 41.76 per cent of Shin through Aspen Holding Co Ltd. Shin, which originally had a 60-per-cent stake, subscribed to all of the capital increase of Bt1.55 billion, or 15.5 million shares, at a par value of Bt100 apiece. Capital OK is a joint venture formed by Shin Corp and DBS offering personal loans, sales finance and credit cards. DBS Bank has been active in the Thai banking industry for decades. It was a major shareholder in the now-defunct DBS Thai Danu Bank for some years, holding up to 75 per cent of the stock before the Thai unit was merged with the now-defunct Industrial Finance Corp of Thailand to form TMB Bank. DBS Bank agreed to dilute its shareholding in the merged TMB Bank. As of last month, DBS Bank's stake in TMB Bank was 16 per cent. TMB Bank's other major shareholders are the Ministry of Finance with 31 per cent, the Thai armed forces with 5 per cent and Thai Life Insurance Ltd with 2-3 per cent.
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