Flashermac Posted February 8, 2006 Report Share Posted February 8, 2006 THE NATION 8 February 2006 NEW TIE-UP FOR AIRASIA Rush for partner after Shin sale to keep Thai licence;"deal this week". Thai AirAsia has become the first unit of Shin Corp to feel the fallout from the Temasek deal, as the budget carrier scrambles to comply with Thai laws on foreign ownership. CEO Tasapon Bijleveld said yesterday the airline was looking for new Thai partners to maintain its Thai-majority ownership in order to keep its aviation licence. Thai AirAsia is a 50:49 per cent joint venture between Shin and Malaysia's Air Asia. "We hope we can announce the new partners on Friday or Saturday," Tasapon said. There were two potential candidates but he declined to name them. "We'll do everything to comply with Thai laws on foreign business ownership. We don't want to be in a grey area," Tasapon said. A source said the Aviation Department had sent a letter to the airline asking it to review its shareholding structure after Temasek Holdings became the largest shareholder in Shin Corp, which owns a 50-per-cent stake in Thai AirAsia. Temasek's 49.6-per-cent stake in Shin Corp pushed Thai AirAsia's foreign ownership above the 49 per cent limit, putting it in breach of the Foreign Business Act. This disqualifies the airline from holding a licence for aviation services in the Kingdom. To remain eligible for the licence, the airline, which was launched in 2003, must ensure that Thai nationals or Thai entities own at least 51 per cent of its shares. Currently, Shin Corp owns 50 per cent of Thai AirAsia, Air Asia founder Tony Fernandes owns 49 per cent and Tasapon, a Thai national, owns the remaining 1 per cent. When signing the share-purchase contract with Shin Corp, Temasek said it had no plans to sell any Shin-owned businesses. Temasek's takeover of Shin has sparked a public backlash over fears national assets will fall into foreign hands. Temasek is under strong public pressure to sell Shin Corp's stakes in Shin Satellite, iTV and Advanced Info Service (AIS) to avoid a conflict with those who want to keep ownership of Thai airwaves, radio frequencies and satellite orbital rights in Thai hands. Market watchers have said Tem-asek might sell some Shin units to recoup part of its massive investment and that Prime Minister Thaksin Shinawatra's family could end up buying them. Temasek has already spent Bt73.3 billion for a 49.6 per cent stake in Shin and plans to spend Bt79 billion more for the remaining shares. It also plans to spend Bt122 billion to snap up more AIS shares. Democrat MP Kiat Sitthee-amorn said Thaksin appeared to have compromised national and security interests by allowing his family to sell its stake in Shin Corp to the investment arm of the Singaporean government. Kiat said it was necessary to investigate whether the deal violated the law, given that it resulted in cascading shareholding in several Shin units that might push their foreign ownership ratios above the legal limit. by Suchat Sritama Link to comment Share on other sites More sharing options...
samak Posted February 9, 2006 Report Share Posted February 9, 2006 see also in the news section! Link to comment Share on other sites More sharing options...
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