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Posts Tagged ‘Shin’

Temasek’s Asean tales

In Temasek, Vietnam on 22/02/2014 at 4:23 am

This week’s Asean’s round-up is all about Temasek or its TLCs.

Singapore state investor Temasek Holdings Pvt Ltd TEM.UL is seeking to sell its $3.1 billion stake in Thai telecom company Shin Corp INTUCH.BK, according to people familiar with the matter, and has approached its SingTel (STEL.SI) unit as a possible buyer. But the troubles in Thailand have put an end to the talks.

TRE and TOC readers will be banging their balls when they learn: The Temasek stake in Shin Corp, founded by former Thailand prime minister Thaksin Shinawatra, is worth $3.1 billion by current market value.

Shin Corp’s shares now trade more than 50 percent above the price paid in 2006 by a Temasek-led consortium, that included Chinese-Thai businessman Surin Upatkoon, when it bought 96 percent of the Thai firm for a total of $3.8 billion.

As for SingTel:

“At a fair price such a deal would make sense for SingTel,” Chris Lane, senior analyst at Sanford C. Bernstein in Hong Kong who covers Asia-Pacific telecommunications. SingTel is 52 percent-owned by Temasek.

Shin Corp owns 40.5 percent of Thailand’s biggest mobile telecoms company, Advanced Info Service Pcl ADVANC.BK. SingTel already has a 23 percent stake in AIS: Adding the Shin Corp stake would cement its position in a bigger market and offset sluggish growth in mature economies where it’s also present, like Australia.

“SingTel executives are involved in the day-to-day operations of the company AIS,” said Bernstein analyst Lane. “Buying the stake from Temasek avoids the possibility of another ‘telco’ securing a significant interest in AIS.”

http://www.reuters.com/article/2014/02/18/us-temasek-shincorp-singtel-idUSBREA1G1H520140218

FPT Corp, Vietnam’s largest publicly traded telecommunications and software company, has asked Temasek to help it identify a Singapore technology company for acquisition to boost sales overseas, the Bloomberg news agency reported.

FPT will spend as much as US$20 million (S$25 million) on a Singapore acquisition, Chief Executive Officer Bui Quang Ngoc said in an interview on Wednesday. The company, which had sales of 28.6 trillion dong (S$1.7 billion) in 2013, seeks to more than triple revenue from overseas to US$400 million by the end of 2016, co-founder Mr Ngoc, who took charge in July, said in Hanoi. “Singapore is a very attractive market,” Mr Ngoc said. “If we can be successful in Singapore, it means we have enough experience to do it in other countries.”

FPT is looking to acquire a Singapore company that specialises in software services such as inventory management, order processing and employee payroll, said Mr Duong Dung Trieu, chief executive officer of FPT Information System, a unit that contributes 25 per cent of the parent’s pretax profit.

The company plans to make the acquisition in Singapore “as soon as possible,” Mr Ngoc said. Temasek holds less than 5 per cent stake in FPT, according to the Vietnamese company.

Finally airport services and catering firm SATS (a listed TLC) agreed to buy a 41.65 per cent stake in Indonesian aviation and food service provider Cardig Aero Services for 1.1 trillion rupiah (S$118 million) to grow its business in South-east Asia’s largest economy.

Indonesia is a priority market said SATS. The country’s topography and a fast-growing economy and middle-class population will continue to drive greater demand for high-quality food and travel, it said. “CAS is an attractive investment opportunity in our core business which will generate sustainable value for our customers, employees and shareholders as Indonesia continues to grow,” said Mr Alexander Hungate, President and Chief Executive Officer of SATS.

And he’s right about Indonesia: http://www.economist.com/news/finance-and-economics/21596989-how-worlds-fourth-most-populous-country-weathering-emerging-market

SingTel: Gd new, bad news

In Telecoms, Temasek on 26/03/2010 at 5:15 am

“Bharti has tied up US$7.5bn of loans through Standard Chartered, Barclays and a roster of other international banks to fund its $10.7bn bid, which includes $1.7bn of Zain debt. The State Bank of India has also promised up to $1bn more to cover associated deal costs. At a reported interest rate of 2 percentage points over Libor, Bharti is being charged less than many investment grade companies would expect to pay”, FT reports.

So Bharti is on track in its purchase of  Zain. And SingTel will have exposure to Africa.

http://atans1.wordpress.com/2010/02/17/singtel-during-the-hols/

The bad news is that Thailand’s government will present a plan in two months to “create a level playing field” for telecom firms, including possible compensation for changes to concessions, said Prime Minister Abhisit Vejjajiva.

Prosecutors will also make a decision on whether to seek damages over royalty payments to state-run TOT from Advanced Info Service, Thailand’s biggest mobile phone company that was owned by  former PM  Thaksin Shinawatra via Shin.

But SingTel and Temasek will be comforted that the Finance Minister said: “Whether there will be retroactive pursuit of fees forgone by the government from the company is unlikely. I don’t feel that it would be fair to go after shareholders of these companies for adjustments in the concessions that were made by the previous owner.” Remember AIS is an associate of SingTel and Temask has a 79% economic interest in Shin that is AIS’s controlling shareholder.

http://atans1.wordpress.com/2010/03/14/singtel-collateral-damage-from-shin/

The concession of True Corp, Thailand’s third-biggest mobile operator, is set to expire in 2013. AIS’s expires in 2015 and Total Access’ in 2018. Each firm negotiated amendments to the original concessions, which the government’s legal advisory body said in 2007 failed to comply with the law.

Update

More bad news: SingTel’s and StarHub’s joint bid for World Cup footie has been rejected. Footie fans will know who to blame if SingTel doesn’t cough up more (don’t see why StarHub would). If it does, it will lose money. Peanuty amounts but still money.

Makes me ashamed to be from RI. The CEO is an RI gal. RI boys don’t do such dumb things, only RI gals.

SingTel: Collateral damage from Shin?

In Telecoms, Temasek on 14/03/2010 at 5:51 am

Pro-Thaksin demonstrators  have reach Bangkok ahead of a  rally today (Sunday). The government has deployed about 40,000 security personnel. The Internal Security Act has also been invoked, giving the military extra powers to impose curfews and restrict numbers at gatherings.The last major protests, in April last year, turned violent, with two deaths and dozens of people injured.

This protest comes after the Supreme Court ruled that former PM Thaksin Shinawatra’s family should be stripped of more than half a contested US$2.3 billion. The court said US$1.4 billion of the assets were gained illegally through conflict of interest when Mr Thaksin was prime minister. The funds were frozen after Mr Thaksin’s elected government was overthrown in a military coup in 2006.

He, who is living abroad, has denied any wrongdoing.

The Economist reported two issues ago: “The court’s verdict exposes Mr Thaksin and his family to a range of civil and criminal charges. Prosecutors may go after members of his cabinet and officials accused of helping Shin Corp. The government can also try to claw back lost revenue from Shin Corp, and particularly its lucrative mobile-phone unit, AIS.”

Readers will be aware that SingTel has a 21.4%  stake in AIS.  No wonder Shin’s executive chairman and acting president Somprasong Boonyachai said to BT two weeks ago (juz after the court’s verdict) that Temasek could divest its stake in Shin Corp if the right buyer comes along.

Maybe Temasek is prepared to cut loss? It lost abt US$4.6 billion on Merrill Lynch so a loss of  around US$655 million (assuming that its interest in Shin is only 42%, and not the 79%  economic interest that some analysts have calculated) would be “Peanuts” as Mrs SM might have put it, though she did not.  I mean waz US$655 million when you dropped US$4.6 billion?

Time to call John Paulson? He is the hedgie who bot BoA (that bot ML) when Temasek was selling.

But on Friday that same Thai said Temasek had no plans to sell its stakes in Shin or in satellite unit Thaicom.  Either he is the Thai version of Gopalan Nair or Temasek has changed its mind in two weeks

Anyway, the repercussions  of the Shin deal go on and on http://atans1.wordpress.com/2010/03/06/better-at-destabilising-than-investing/

BTW a conspiracy theorist or one who practices the art of guessing what is going on behind the scenes: dietrologia in Italian, literally “behindologypoint”, has argued that the Shin purchase was a gd deal that went wrong because of the coup.

A Pakistani (you know how mad they can be) of my acquaintance has connected  the dots between these three indisputable facts

1 When Thaksin was PM he had proposed spending 1.7 trillion baht between 2006 and 2010 (then US$47 billion) on mass transit systems, water pipelines, communications technology and other projects to boost the economy and improve the country’s infrastructure.

2 TLCs have the expertise to do these projects.

3 Thaksin has been found by the Thai courts to be venal.

My mad Paki wonders aloud if someone might have tot of the billions of $ that TLCs could from the Thai government win if Shin was bot at a more than fair price? Note that the price was so fair to shareholders that brokers recommend that they sell to the consortium

I told him S’pore Inc. does not bribe: if we did we would be more successful than Taiwanese and Hongkies in China. He pointed out that S’poreans learn from their mistakes.

Update 15 March 4.30 am

Tens of thousands of Thai opposition supporters have rallied in Bangkok  and gave Prime Minister Abhisit Vejjajiva until Monday afternoon to call fresh polls. They vowed to demonstrate across the capital if he refuses to do so. The government insists it will not stand down and has tightened security.


Better at destabilising than investing?

In Temasek on 06/03/2010 at 6:12 am

Reading the local MSM last week on Thailand’s supreme court ruling that former PM Thaksin Shinawatra’s family should be stripped of more than half a contested US$2.3bn fortune* had me wondering if senior Temasek staffers involved in that deal missed their true vocation.

It was his family’s decision to sell its shares in one of Thailand’s biggest telecom groups, Shin Corp, to a Temasek-led consortium that led to his downfall. So one way of looking at things is that the decision by Temasek to lead a consortium to buy Shin was the cause of his troubles.

The early 2006 sale netted his family and friends US$1.9bn, angering many urban, educated Thais: the Thaksins had avoided paying tax and had sold a strategic asset to another country.

There were street demonstrations and he called a snap general election for April 2006. But the main opposition parties boycotted the polls and many voters chose to register a “no vote”.

Faced with the threat of further protests, he stepped down for a few weeks, but returned to office in May. In September that year, the military seized power while the prime minister was out of the country.

I’m  sure that the Temasek executives who made the decision to invest in Shin would easily get top jobs in the “black ops” section of the CIA, KGB or MI6.  Overthrowing an unfriendly government is hard enough to do (ask the CIA about Castro and Chavez) but overthowing a friendly government can only be done by geniuses.

After all they failed as Buffetts: an ST article kindly reminded readers that Temasek paid 49.25 baht for each Shin share and the present share price is about 28.   The offer price was so gd that brokers advised their clients to tender their shares. The Temasek-led consortium ended up with so many shares, that Shin shld have been delisted.  For some unknown reason it wasn’t.

And they failed as hedgies. John Paulson was buying BoA, just as Temasek was selling out. In BoA and Barclays with hindsight,  Temasek sold around “maximum pessimism” ,  losing an estimated U$4.6 billion

And Temasek’s Seatown wants to be a hedgie?http://atans1.wordpress.com/2010/02/22/temasek-the-significance-of-seatown/

Talking of kids with toys using our money.

So working for the CIA might be best for Singapore, and the world. Obama needs help in Iran, Afganistan and Pakistan against some pesky Muslims.

And thinking abt it, they can also put on their CVs  how they made S’poreans angry with their government, and doubting its competency and compassion.

Many S’poreans are angry at the Shin, ML, and Barclays losses, and the growing perception here that the losses are a sign that the S’pore government “does” and tolerates  incompetency, within the government and state agencies.

Worse the govmin cannot answer the critics of its welfare policies that it is being prudent. These subversives (from PAP perspective) can answer back,”Prudence, what prudence losing a few billions here and a few billions there?”

——

*because the court said US$1.4bn  of the assets were gained illegally through conflict of interest when Mr Thaksin was prime minister (The funds were frozen after Mr Thaksin’s elected government was overthrown in a military coup in 2006),

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