Mixed response to statement
Stocks of Shin Corp Plc and its affiliated companies showed a mix response after Temasek Holdings of Singapore announced its intention to reduce its shareholding.
Shin Corp started the day with a gain and headed further north to the day's highest level at Bt36.25 before weakening slightly to close the day at Bt34.75, a 2.21 per cent overall gain. Shin Satellite Plc was up 2.38 per cent at Bt8.60 and iTV Plc rose 0.69 per cent at Bt2.92. Advanced Info Service Plc dropped 3.19 per cent to Bt91 and CS Loxinfo Plc slid 0.54 per cent to Bt3.70. The composite SET index yesterday had a roller-coaster ride, beginning the day at 717.11 and closing at 710.74 per cent, a 0.89 per cent decline. Shin Corp stocks jumped sharply last Wednesday from Bt28.25 to Bt34 after The Nation reported that Temasek had discussed with Prime Minister Surayud Chulanont ways to solve its controversial ownership issue in an appropriate manner. However, its current share price remains below Temaseks' buying price of Bt49.25. Temasek, through its two units - Cedar Holdings and Aspen Holdings - bought out a 49-per-cent stake in Shin Corp from ousted prime minister Thaksin Shinwatra's family in January for US$1.9 billion (Bt71 billion), then bought a further 45 per cent through a tender offer, leaving just 4 per cent as free-floating stock. After the deal was completed early this year, Shin stock took a nosedive mainly on strong criticism over selling national assets to foreign owners and the appropriateness of the sell-out deal. Based on the closing price yesterday, Temasek would lose Bt44.53 billion. Shin Corp's stock dipped to an intra-day trough this year at Bt27.50 on June 26. Kasikorn Securities deputy managing director Amarit Sukhavanij recommended that investors avoid snapping up stocks of the Shin group as it was unclear who would buy the stocks from Temasek and at what price. "It is difficult for Temasek to sell shares directly and we don't know whether Temasek will sell shares in Advanced Info held by SingTel," he said. Singapore Telecommunications holds a 20-per-cent stake in Thailand's largest cell-phone service provider. Shin Corp's second-quarter net profit fell from Bt2.23 billion last year to Bt1.6 billion.
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