[Tlc] TL-Shin Corp problems with Laos too!

[justinm at ucr.edu]

2007-0901 - BKK Post - Shin Satellite denies Lao contract breach

http://www.bangkokpost.com/010907_Business/01Sep2007_biz34.php

TELECOMMUNICATIONS / FOREIGN JOINT VENTURE

Shin Satellite denies Lao contract breach

KOMSAN TORTERMVASANA

Shin Satellite yesterday denied the Laotian government's
charge that it had breached its joint-venture contract with
Lao Telecom by selling its investment in Shenington Investment
to the Temasek Group. A company executive said that although
Shin Satellite was selling its 49% stake in Shenington to Asia
Mobile, a company partly owned by Singapore Technologies
Telemedia (STT), the shareholding structure in the
joint-venture firm, Lao Telecom, remained unchanged with the
Laotian government holding 51% and Shenington holding 49%.

Shenington is an investment holding company originally
established by deposed prime minister Thaksin Shinawatra, when
his family controlled Shin Corp before selling out to Temasek
last year. Shenington has a 100% stake in Cambodia Shinawatra
and 49% of Lao Telecom. STT is a unit of Temasek, which owns
Shin Satellite parent Shin Corp.

Although Shin Satellite's 100% stake in Shenington would
shrink to 51% with Asia Mobile holding the 49% stake, it was a
change of shareholding structure on the top. For the Lao
Telecom structure, nothing was changed, the company said.

Therefore, the Laotian government should not threaten to
revoke the contract or freeze any assets of the joint-venture
company, the executive said.

He said Shin Satellite's past performance with Lao Telecom was
healthy and the business generated substantial income for the
Laotian government.

Earlier, Laos's Ministry of Communications, Transport and
Construction asked Thailand to freeze the assets of the Shin
Group and stop all cash and dividend transactions as of June 16.

Laos said the original joint-venture contract stipulated that
if a partner wanted to sell its stake, the Lao side should be
given priority to buy the stake.

Shin Satellite maintains that the concession stipulates that
any shareholder wishing to sell or transfer its stake is
required to obtain prior written consent of the other
shareholders.

''The sale of 49% of the shares is not within the scope of the
master agreement and the company had already clarified the
matter and sent members of its management to clarify the
matter with the Lao government. Shenington is still a
shareholder holding 49% shares in LTC,'' Shin Satellite said
in a statement to the Stock Exchange of Thailand yesterday.

Under the terms of the sale, Asia Mobile will invest $200
million in cash for a 49% equity stake in Shenington while
Shin Satellite will remain the controlling shareholder with a
51% stake.

Shin Satellite shares (SATTEL) closed yesterday at 10.60 baht,
up 30 satang.

______________
Dr. Justin McDaniel
Dept. of Religious Studies
2617 Humanities Building
University of California, Riverside
Riverside, CA 92521
951-827-4530
justinm at ucr.edu