Thread: Temasek likely breached ownership rules in Shin deal

Temasek likely breached ownership rules in Shin deal

Singapore's Temasek Holdings has likely violated Thailand's foreign ownership rules in its purchase of telecom giant Shin Corp, a senior commerce ministry official said Friday.


The ministry's examination of the case, which police say they will begin reviewing next week, found that a holding firm called Kularb Kaew that was set up during the deal potentially holds Shin Corp shares on behalf of Temasek, the official said.
"The summary that we sent to the police clearly stated that it holds a stake on behalf of foreign investors," Sakon Hansutthivarin, secretary to the commerce minister told AFP.
However, the commerce ministry did not say whether Temasek actually violated the rules that limit foreign companies to owning 49 per cent of Thai telecoms.
That determination will be made by Thai police, who have set up a special panel set to begin examining the case next week.
Shin Corp was founded by deposed prime minister Thaksin Shinawatra, who was ousted in a bloodless coup on September 19.
His family sold their 49-per cent stake in the company to Temasek for 1.9 billion dollars in a tax-free deal that sparked months of street protests and political turmoil that led to the military takeover.
After the buyout of Shin, a Temasek-led group of investors increased its total stake to 96 per cent through a mandatory offer for the outstanding shares.

Many foreign companies use similar structures to get around the foreign ownership limits, in a practice that has been widely accepted in Thailand for decades.
Agence France Presse

source: Temasek likely breached ownership rules in Shin deal

Many foreign companies use similar structures to get around the foreign ownership limits, in a practice that has been widely accepted in Thailand for decades.

It's rather ironic that it was Thaksin who started to close this loophole, immedietly after the Shin sale.

Originally Posted by William

Many foreign companies use similar structures to get around the foreign ownership limits, in a practice that has been widely accepted in Thailand for decades.

Doesnt that quote create the problem? Though stock manipulation Shin became 49% Toxin. The it all began from there. How many companies can make over a billion dollars profit and not pay some tax. This was not a company, but an individual who organized the revenue department to crack down on taxes of the middle and upper middle class.

^ I slightly disagree with you there AO.

The company did not make over a billion dollars profit, the stakeholders did. That's the risk of investing in a company. Indeed, this year doesn't look like it will be a good one for Shin Sat., following the adventures of ThaiCom 5.

Insofar as the tax is concerned, while tax avoidance is illegal, tax planning is not. Ask yourself which man would happily pay tax and you'll find youself in a very small room

And do you think Toksin was the only man to do this? Generous, kind, benevelent Warren Buffet. Know how much tax he was paying all those years?

People become rich for a number of reasons. Very high up on that list is that they do not let the government interfer with what they're doing - including having to pay pesky taxes.

On a personal note, I would estimate that I spend around 3 working days or more a year trying to research ways to minimize my tax. Probably the most unproductive use of my time within the year.