January 24, 2006 - Trading volume on the Thai stock market hit an all-time high of Bt94.6 billion yesterday, thanks to Temasek’s Bt73.3-billion buyout of Shin Corp Plc (SHIN). The impact of the country’s biggest-ever acquisition deal did not boost just stocks, it saw the baht strengthen to Bt39.02 against the dollar in the morning, marking a 10-month high against the greenback. It later weakened to Bt39.2 in late trading.
The previous highest trading volume was registered on January 13, 2004 when Bt61.9 billion worth of stocks changed hands.
The deal also helped the SET Index to buck the regional downward trend, closing 0.35 per cent higher at 750.28.
Shin announced that Temasek Holdings subsidiaries Cedar Holding and Aspen Holding had bought a 49.6 per cent stake in the company that had been held by the Shinawatra and Damapong families. The shares were sold for Bt49.25 apiece, or a total of Bt73.3 billion.
The big-lot transactions for the Shin stake were made on both the foreign and local boards through six brokers: UBS Securities (Thailand), SCB Securities, Phatra Securities Plc, KGI Securities (Thailand) Plc, Trinity Securities and Thanachart Securities yesterday morning.
Immediately after the transaction took place, Shin’s shares shot up from their previous close of Bt46.50 to Bt48.25 before trading was suspended.
The SET halted trading of Shin, its subsidiaries and affiliates comprising Advanced Info Service Plc (ADVANC), Shin Satellite Plc (SATTEL), iTV Plc (ITV), and CS Loxinfo Plc (CSL)
Ahead of the suspension, Shin was the most active stock with a trading volume of Bt1.61 billion.
Its warrant was the fourth highest traded security with a volume of Bt488.6 million.
SATTEL was the fifth-most traded stock with a volume of Bt477.07 million.
ADVANC’s stock came in at ninth place with volume of Bt291.65 million.
The cell-phone firm’s share price ended at Bt104, SATTEL closed at Bt15.50, iTV at Bt11.90 and CSL at Bt4.04.
Meanwhile, Bank of Thailand Governor MR Pridiyathorn Devakula said the upward pressure on the baht would ease after the close of the Shin Corp deal yesterday.
According to the governor, the foreign funds to buy Shin Corp were brought into the country in two tranches, one in the middle of last week and the other last weekend.
“The first sum came during Wednesday and Thursday, and the second one came in between Friday and Monday,” Pridiyathorn said.
The governor said the central bank had no problem dealing with the slightly stronger baht as it should not affect exports by much.
Anoma Srisukkasem
The Nation
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