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Coffeeshop Chit Chat - Temasek's investment in Thailand shaken!</TD><TD id=msgunetc noWrap align=right></TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"></TD><TD><TABLE border=0 cellSpacing=0 cellPadding=0><TBODY><TR class=msghead vAlign=top><TD class=msgF width="1%" noWrap align=right>From: </TD><TD class=msgFname width="68%" noWrap>kojakbt89 <NOBR></NOBR></TD><TD class=msgDate width="30%" noWrap align=right>6:43 pm </TD></TR><TR class=msghead><TD class=msgT height=20 width="1%" noWrap align=right>To: </TD><TD class=msgTname width="68%" noWrap>ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right>(1 of 2) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft rowSpan=4 width="1%"></TD><TD class=wintiny noWrap align=right>44238.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>Temasek Holdings’ investment in Thailand shaken
February 6th, 2011 |
Author: Online Press |
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The Singaporean government’s investment arm, Temasek Holdings, is expected to fight any attempts by TOT Plc to seek billions of baht in compensation from Thai telecoms companies in which it has holdings, say observers.
TOT announced on Tuesday it will seek 214.7 billion baht in compensation from local telecom operators – including AIS, which is owned by Temasek – for unpaid access charges and losses resulting from improper policy changes made by past governments.
The news, which shook the Thai share market, is likely to cast Temasek’s Thai investments under a cloud, said a Post Today writer.
Investments in the Thai share market by Temasek face a period of uncertainty, he said.
Temasek Holdings has invested in the telecommunications, energy and hospital sectors here.
Some believe its willingness to invest in Thailand was tied to the fortunes of former prime minister Thaksin Shinawatra.
Once Thaksin was toppled from power, Temasek Holdings’ investments in Thailand started to look less attractive to the company.
Now, the findings of a committee appointed under Section 22 of the Joint Public/Private Venture Act 1992 could shake up Temasek’s investments still further.
The committee recommended that state-owned TOT sue Advanced Info Services (AIS), its mobile phone concessionaire, for over 70 billion baht in damages caused by amendments to its concession contract during the time Thaksin was in power.
Singapore telecoms giant Singtel and Temasek Holdings stand to be affected, as they are the major shareholders in Shin Corp and AIS.
If TOT sues AIS and wins, AIS may find it hard to survive, as it would have to pay a huge sum in damages.
Finance Minister Korn Chatikavanij revealed that Singtel executives came to see him earlier last month to discuss the AIS issue.
Mr Korn said he would treat the Singaporean investors fairly, as Singtel helped develop the communications industry in Thailand.
However, Mr Korn is prodding Singtel to acknowledge that it knew about the contract amendments which benefited Shin Corp, AIS and others.
“At that time [Singtel] may have thought that contract amendments would not cause any legal problems.
“I will take care of this issue in a fair manner, but I ask that [Singtel] not deny knowing about the issue,” said Mr Korn.
When news leaked that the Section 22 committee (a committee set up by the ICT minister under section 22 of the Joint Private/State Venture Act of 1992 to come up with a resolution concerning AIS after the Supreme Court’s Criminal Division for Holders of Political Positions last year brought down a judgement in the Shinawatra family’s unusual wealth case) would find against AIS, the Thai stock market nose-dived, falling below the 1,000 points barrier.
Some insiders claimed the selling orders originated from Singapore, and were intended to express displeasure with the Thai government, which investors thought was trying to punish AIS.
Another rumour surfaced that several hedge funds based in Singapore and Hong Kong began to sell their holdings in companies owned by Temasek Holdings, including Singtel and AIS.
Prime Minister Abhisit Vejjajiva met Singtel group chief executive Chua Sock Koong on Tuesday.
Some believe the Singtel CEO carried a letter from Temasek Holdings seeking Mr Abhisit’s opinion of foreign investors in the communications industry in Thailand.
ICT Minister Juti Krairiksh wanted to table the Section 22 committee’s conclusion with the cabinet on Tuesday for endorsement.
Mr Korn asked for more time, as he wants to seek a compromise solution.
The Finance Ministry said those who were involved in concession contract amendments which damaged TOT should be punished, which means the TOT board chairman and other high-ranking executives could be targeted.
The Supreme Court’s Criminal Division for Holders of Political Positions in February last year confiscated 46.3 billion baht that Thaksin and his former wife, Potjaman na Pombejra, acquired from selling their shares in Shin Corporation to Temasek Holdings.
The court ruled that Thaksin had abused his power and had become unusually richer while holding the post of prime minister. It also found he abused his authority to benefit Shin Corp.
Post Today did not believe that Singtel and Temasek Holdings should be punished as they were not directly involved in Thaksin’s power abuse.
The Finance Ministry insisted that TOT, as the concession owner, must be the party which initiates legal proceedings to recover the damages.
The statutory period for taking action is one year after the Supreme Court handed down its verdict.
If the ICT Ministry and TOT do not do anything to recover the losses, both could be sued for dereliction of duty.
The Finance Ministry told the Section 22 committee that other telecom concessionaires including DTAC and True Move should also be sued for damages by CAT Telecom.
Singtel and Temasek are likely to strongly resist any TOT threat to their investments – whatever they may think of Thailand since Thaksin was ousted from power.
.
Source: Bangkok Post
* Temasek Review is in no way related or affiliated to Temasek Holdings.
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TOT announced on Tuesday it will seek 214.7 billion baht in compensation from local telecom operators – including AIS, which is owned by Temasek – for unpaid access charges and losses resulting from improper policy changes made by past governments.
The news, which shook the Thai share market, is likely to cast Temasek’s Thai investments under a cloud, said a Post Today writer.
Investments in the Thai share market by Temasek face a period of uncertainty, he said.
Temasek Holdings has invested in the telecommunications, energy and hospital sectors here.
Some believe its willingness to invest in Thailand was tied to the fortunes of former prime minister Thaksin Shinawatra.
Once Thaksin was toppled from power, Temasek Holdings’ investments in Thailand started to look less attractive to the company.
Now, the findings of a committee appointed under Section 22 of the Joint Public/Private Venture Act 1992 could shake up Temasek’s investments still further.
The committee recommended that state-owned TOT sue Advanced Info Services (AIS), its mobile phone concessionaire, for over 70 billion baht in damages caused by amendments to its concession contract during the time Thaksin was in power.
Singapore telecoms giant Singtel and Temasek Holdings stand to be affected, as they are the major shareholders in Shin Corp and AIS.
If TOT sues AIS and wins, AIS may find it hard to survive, as it would have to pay a huge sum in damages.
Finance Minister Korn Chatikavanij revealed that Singtel executives came to see him earlier last month to discuss the AIS issue.
Mr Korn said he would treat the Singaporean investors fairly, as Singtel helped develop the communications industry in Thailand.
However, Mr Korn is prodding Singtel to acknowledge that it knew about the contract amendments which benefited Shin Corp, AIS and others.
“At that time [Singtel] may have thought that contract amendments would not cause any legal problems.
“I will take care of this issue in a fair manner, but I ask that [Singtel] not deny knowing about the issue,” said Mr Korn.
When news leaked that the Section 22 committee (a committee set up by the ICT minister under section 22 of the Joint Private/State Venture Act of 1992 to come up with a resolution concerning AIS after the Supreme Court’s Criminal Division for Holders of Political Positions last year brought down a judgement in the Shinawatra family’s unusual wealth case) would find against AIS, the Thai stock market nose-dived, falling below the 1,000 points barrier.
Some insiders claimed the selling orders originated from Singapore, and were intended to express displeasure with the Thai government, which investors thought was trying to punish AIS.
Another rumour surfaced that several hedge funds based in Singapore and Hong Kong began to sell their holdings in companies owned by Temasek Holdings, including Singtel and AIS.
Prime Minister Abhisit Vejjajiva met Singtel group chief executive Chua Sock Koong on Tuesday.
Some believe the Singtel CEO carried a letter from Temasek Holdings seeking Mr Abhisit’s opinion of foreign investors in the communications industry in Thailand.
ICT Minister Juti Krairiksh wanted to table the Section 22 committee’s conclusion with the cabinet on Tuesday for endorsement.
Mr Korn asked for more time, as he wants to seek a compromise solution.
The Finance Ministry said those who were involved in concession contract amendments which damaged TOT should be punished, which means the TOT board chairman and other high-ranking executives could be targeted.
The Supreme Court’s Criminal Division for Holders of Political Positions in February last year confiscated 46.3 billion baht that Thaksin and his former wife, Potjaman na Pombejra, acquired from selling their shares in Shin Corporation to Temasek Holdings.
The court ruled that Thaksin had abused his power and had become unusually richer while holding the post of prime minister. It also found he abused his authority to benefit Shin Corp.
Post Today did not believe that Singtel and Temasek Holdings should be punished as they were not directly involved in Thaksin’s power abuse.
The Finance Ministry insisted that TOT, as the concession owner, must be the party which initiates legal proceedings to recover the damages.
The statutory period for taking action is one year after the Supreme Court handed down its verdict.
If the ICT Ministry and TOT do not do anything to recover the losses, both could be sued for dereliction of duty.
The Finance Ministry told the Section 22 committee that other telecom concessionaires including DTAC and True Move should also be sued for damages by CAT Telecom.
Singtel and Temasek are likely to strongly resist any TOT threat to their investments – whatever they may think of Thailand since Thaksin was ousted from power.
.
Source: Bangkok Post
* Temasek Review is in no way related or affiliated to Temasek Holdings.
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