Singapore’s Temasek Holdings (TEM.UL) has no concrete plan to sell its stake in Thai telecoms group Shin Corp (SHIN.BK) but would consider selling part of it if a buyer came forward, an official at the Thai firm said on Friday. 

“Temasek has not officially announced they want to sell Shin shares at this moment. But if there is an interested buyer, they would consider the issue,” the official told Reuters, declining to be named. 

 

The Singapore state investment firm controls 96.11% of Shin, which was founded by former Thai Prime Minister Thaksin Shinawatra.  

 

The Supreme Court ruled last week that Thaksin and his former wife concealed their ownership of shares in Shin Corp while he was in office and that he tailored government policies to benefit the Shin group before he was ousted by the military in 2006.

 

The sale of the company to Temasek in January 2006 was one of the factors that precipitated the coup against Thaksin. 

 

The court case has fuelled speculation that Temasek might divest some or all of its stake in the Thai firm, now valued at around US$2.7 billion ($3.78 billion). 

 

The stake is held under a complicated structure, partly through Thai-registered companies. Foreign companies are generally limited to owning a maximum 49% of Thai companies.  

 

Temasek had, from late 2006, considered diluting its holding to 49% to ease political pressure. But those plans were put on on hold pending a probe into whether the takeover broke the law and a more general review of takeover laws, which did not finally result in any change in the legislation. 

 

Shin Corp controls more than 20 companies in the wireless, satellite, Internet and media sectors, with 43% owned Advanced Info Service (AIS) (ADVA.BK) contributing more than 80% of profits. 

 

AIS, Thailand’s top mobile phone operator with a 50% market share, is 21% owned by Singapore Telecommunications (STEL.SI), itself 54% owned by Temasek. 

 

The current market value of Shin shares is just over half the price Temasek paid, 49.25 baht. 

 

Shares in Shin Corp, AIS and satellite operator Thaicom have been battered this week by worries about the implication of the court verdict after the government set up a legal team to examine the concessions of AIS and Thaicom. 

 

At 0839 GMT, AIS shares were down nearly 5% at 77.25 baht after falling as low as 76.50 baht, while TAC lost 4.4% to 32.25 baht after falling as low as 31.50 baht. The overall market was down 0.75%. Shin Corp (SHIN.BK) was down 3.6% at 26.50 baht.