It says telecoms services and media are its two core businesses.

Jul 02, 2007
Reuters

BANGKOK, July 2 (Reuters) - Shin Corp , Thailand's top telecoms group and controlled by Singapore's Temasek Holdings , said on Monday it was seeking an opportunity to invest in media sector after losing a TV broadcast licence.

"Telecoms services and media are our two core businesses," Somprasong Boonyachai told his first news conference as executive chairman since taking the top position this month.

The investment should support growth of the group's telecoms services run by Advanced Info Service (AIS), Thailand's largest mobile phone operator, and Shin Satellite , Somprasong said.

He gave no specific details of the investment plan for Shin, which includes more than 20 companies in the wireless, satellite, Internet and media sectors with its 43-percent owned AIS contributing more than 80 percent of profits.

The company booked losses from its investment in broadcaster ITV PCL after the government took over the licence of the 53-percent owned subsidiary in March following a long battle over unpaid fees and fines.

Last month, Shin Corp sold its stake in budget airline Thai AirAsia Ltd to its executives as part of a drive to divest non-core businesses.

Shin was also in talks with investors to sell a stake in its wholly-owned consumer finance unit Capital OK, expected to be concluded by the end of this year, media business chairman Arak Chonlatanon said.

"We can't tell you whether we will sell some or the whole part. It depends on pricing. We'll try to find best solution for everyone," Arak said.

Shin has said Capital OK is not a core business and the company booked a huge loss from the investment in the finance firm.

Somprasong said Shin, which became deeply embroiled in a political row between Thailand and Singapore after a Thai coup ousted Shin founder Thaksin Shinawatra in September, was now free of politics and would concentrate on business.

Shares in Shin have been roiled since the Shinawatra family sold a controlling stake in the firm to Temasek for a tax-free $1.9 billion in January last year.

At 0733 GMT, Shin shares were up 3.3 percent at 31 baht, while the overall Thai index was up 1.12 percent.

Somprasong said the stock exchange had extended the time given to Shin to raise its free share float to May 2008. The free float had dropped to under 4 percent, below the exchange requirement of 15 percent, after Temasek's $3.8 billion takeover.

Temasek controls Shin Corp through holdings in two Thai-registered companies which together own more than 96 percent of Shin, now valued at $3 billion on the Thai bourse.

The Singapore state investment firm has said it wants to dilute its holdings in Shin to 49 percent, but financial sources say the plan was put on hold pending a probe on whether the takeover broke laws limiting foreign ownership of Thai firms to 49 percent.

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