huge protest halts thaibev share plans

Thai Beverage, the country's largest producer of spirits and beer, yesterday decided to postpone indefinitely the listing of its shares on the local bourse following massive protests by anti-alcohol groups.

Vichate Tantiwanich, executive vice president of the Stock Exchange of Thailand (SET), said the filing was still incomplete and the firm wanted to delay completion of the process.

Due to the global financial crisis and increased market volatility, ThaiBev had also found it difficult to come up with an appropriate price for its initial public offering.

It announced the indefinite postponement of its plans as more than 10,000 people rallied in front of the SET's headquarters on Rachadaphisek Road, opposing the listing plan.

The Securities and Exchange Commission (SEC) was due to make its decision on the dual-market listing of ThaiBev today.

Shares of ThaiBev are already traded on the Singapore stock market.

In 2005, the Thai firm also applied to be listed on the local bourse but its bid was turned down when Major Chamlong Srimuang led similar protests against the stock-trading plan, prompting ThaiBev to turn to Singapore instead.

Yesterday, Chamlong did not join the protests, as he is still preoccupied with the People Alliance for Democracy's bid to bring down the Somchai Wongsawat government.

Dr Wutthipan Laoboripat, a protest leader, said: "We wanted the stock market to reject the planned trading of ThaiBev's shares. Until we got such an assurance, we would not have ended the protest."

Stock market officials held a lengthy meeting to evaluate the situation as protesters blocked vehicle traffic leading to the exchange.

Patareeya Benjapholchai, president of the SET, said the SEC had the final authority on ThaiBev's filing, adding, "Every party concerned may have diverse opinions on this matter, but we should act with reason."

Senior management sources at ThaiBev had said earlier that its listing plan for the local bourse remained intact and that the protests were not unexpected.

There are two separate issues as far as ThaiBev's listing plan is concerned.

On the one hand, anti-alcohol groups have consistently opposed the listing of the company's shares on the grounds that it would further promote the alcoholic-beverage industry and the consumption of its products.

Yesterday, non-government organisation activists as well as Buddhist monks joined in the protests.

On the other hand, capital-market advocates have insisted that trading of the shares should be approved and the authorities should instead enforce the laws on drinking.

Citing the 2005 decision, they said the local equity market had lost the opportunity to broaden its scope with a large company like ThaiBev, whereas benefits were passed on to the Singapore exchange, which had welcomed the Thai firm.