The Asia Partnership Fund Group plans to spend another US$100 million (Bt3.5 billion) to acquire significant stakes in two Thai firms engaged in the financial and property sectors.

"We choose to invest in the two businesses because we consider that they have high growth potential and offer worthwhile returns," said the group's chairman and chief executive, Mitsuji Konoshita. "Despite the political uncertainty, we have opted to invest in Thailand because of the cheap share price and good returns. It is too early to invest in Vietnam, while it is too late for China.

"The political problems do not pose a threat or cause us to ignore Thailand as an investment alternative. We choose it because its price-to-equity ratio is now at about eight times, compared with 30 times for the Indian stock market," he said.

The $100 million is a part of the group's budget of $250 million for investment in Thailand and Southeast Asia.  Although he did not mention the two firms by name, Konoshita said his group would launch friendly takeover bids. Asia Partnership Fund (APF) will then become a strategic partner by maintaining their management structure and providing financial and technological assistance,

Recently, APF acquired a 62.28-per-cent stake in Group Lease through APF Management and a 71.09-per-cent interest in United Securities through APF Holding.

It estimates that it will take around four years to reach break-even point in its Bt318-million investment in Group Lease, Konoshita said.

"We expect to get a 20-per-cent return on investment in Group Lease because it is engaged in the motorcycle hire-purchase business, which offers steady returns," he said, adding that APF will not change Group Lease's management structure because it already has a good system.

Asia Partnership Fund Group believes its net asset value will grow from $750 million last year to $1 billion during 2007 and 2008. The company manages a total of 37 funds investing in both listed and non-listed companies in various countries.

Siriporn Chanjindamanee

The Nation