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Published on December 5, 2007

"The Cabinet has decided to sell its stakes in seven state-owned enterprises and companies on the stock market to raise Bt7.82 billion to inject capital into TMB," a source was quoted by Reuters as saying.

The source said the seven businesses were Bangkok Bank, Siam Commercial Bank, Padaeng Industry, NEP Realty and Industry, Thai Airways International, MCOT and PTT.

State Enterprise Policy Office director-general Areepong Bhoocha-oom said yesterday the Cabinet had given the go-ahead for the Finance Ministry to sell its stakes to finance TMB's recapitalisation. However, he declined to name the companies.

The ministry has approval to buy TMB shares at Bt1.4 apiece, totalling 5.59 billion shares or Bt7.8 billion. The bank is offering 25 billion shares for its capital-increase plan.

The ministry aims to sell its stakes to both state-owned financial institutions and retail investors via the stock market. It will take into consideration market prices and selling conditions to gain the highest benefit and avoid adversely affecting the stock market, the source added.

TMB is the country's sixth-largest commercial bank. The Finance Ministry is its major shareholder with 31 per cent, the second largest being DBS Bank with 16 per cent.

After the capital-increase purchase, the Finance Ministry will hold a 26.2-per-cent stake in TMB.

After completion of the recapitalisation, TMB will allocate shares to the Netherlands-based ING Bank, which will then hold 30 per cent.

The Nation