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Published on October 12, 2007

"I cannot tell you right now whether they are listed companies," chairman Mitsuji Konoshita told reporters at a press conference yesterday. "For us, listed companies do not matter. The advantage of being a listed company is that it is easier for a due-diligence process. We don't want to invest in companies offering returns below 15 per cent."

Thai insurance companies are popular acquisition targets for Japanese investors. For example, Tokio Marine Group acquired a significant stake in Sri Muang Insurance.

Konoshita said that his fund, which has assets worth $800 million under management, invested in the Thai equity market to the tune of $100 million at the end of July.

It acquired 76 per cent of United Securities, 83 per cent of Group Lease and sizeable stakes in Sunwa Asia Link, a sports training firm, Sunwa World Service, an investment arm in the real-estate business, and Bangkok Station Network, publisher of the Thai-language edition of BusinessWeek.

"As for investment in the next three to five years in Thailand, we cannot answer as this depends on Thai stock market conditions at the time," Konoshita said. "Thailand's market is still attractive compared with Vietnam's. The price-to-earnings ratio of Vietnam's stock market is very high at 34 times, while that of the Thai stock market is at eight times. In addition to capital gains, the Thai stock market offers a good dividend yield."

Meanwhile, he also announced that APF Holdings - Asia Partnership Fund Group's investment arm - had acquired a 40-per-cent stake in Wedge Holdings, an entertainment company in Japan, for 600 million yen (Bt174 million).

Wedge Holdings will make its presence felt in Thailand by swapping shares with Thai entertainment companies, joining investments in the entertainment business and striking alliances, he said.

"We have a concrete plan to use Thailand as our base for the entertainment business and a gateway into the Southeast Asia market," Konoshita added.

Oranan Paweewun, The Nation