S'pore firm to cut Tags stake
Singapore-based Frobisher is preparing to reduce its stake in Thai Airports Ground Services (Tags) from its current holding of 48.5 per cent to avoid breaching the Foreign Business Act, said an industry source.
Considered the single biggest shareholder of Tags, the source said Frobisher is in talks with Thai partners to sell part of its stake. Though Thai shareholders have a 51.5 per cent stake and foreigners hold 48.5 per cent, which is not in excess of the foreign limit of 49 per cent, there might be questions about whether there are nominees. The source added that this might affect the company doing business in the future. The company's paid-up capital is about Bt1 billion. Apart from the 48.5-per-cent stake by Frobisher, the Thai shareholders are Airports of Thailand with 28.5 per cent; Travel Services with 15 per cent and Power Link with 8 per cent. "Frobisher should sell some of its shares to new investors, not to AOT, which has no intention of increasing its stake in Tags," a source said. Tags is trying to expand into free-zone management, airport-trolley management, ground-support equipment, passenger services, VIP-lounge services and aircraft equipment maintenance. It also plans to diversify into new businesses such as property development.
Watcharapong Thongrung The Nation
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