Reporting period for Shin deal extended
The Commerce Ministry has lengthened the information-submission period for all parties involved in the Shin Corp Plc takeover to 10 days after the end of the tender-offer period, before coming up with a verdict on whether any have breached the foreign business law by acting as a foreigner's nominee.
The information covers mainly the shareholder list as well as documents that show their payments for the shares. "We expect to spend another 15 days looking for any breaches of the Alien Business Act BE3542," said Business Development Department director-general Orajit Singhkalavanich. Today, the Business Development Department will inform Shin Corp, Advanced Info Service Plc, Shin Satellite Plc, ITV Plc, CS Loxinfo Plc, Kularb Kaew Co Ltd and Cedar Holdings Co Ltd of the extended period. According to Orajit, the documents must be submitted within 10 days of the end of Temasek Holdings' tender offer for Shin Corp shares. "The investigation will be focused on the shareholders and their payments for the shares, to identify if any is a foreign entity as defined under the law," she said. The department has sought cooperation from Thailand Securities Depository Co Ltd for the updated versions of shareholders in listed companies. Meanwhile, to investigate the information received earlier, there is a team consisting of lawyers, business registration officials on foreign ownership, and accounting officials. "This will help us if any of the companies could be defined as a nominee. If Shin Corp still maintains Thai nationality, it means all the companies under its control are Thai as well," Orajit said. Under the law, being foreign covers an individual who does not hold Thai nationality, a juristic entity not incorporated in Thailand, a juristic entity incorporated in Thailand but owned more than 50 per cent by foreign individuals, or foreign juristic bodies. Orajit said the department would also investigate in terms of capital investment, technology transfer and their activities in the businesses which require business licences. Individuals or juristic bodies found to have held shares in a company on behalf of foreigners violate Article 36, an offence punishable by to three years in jail or a penalty of Bt100,000 to Bt1 million, or both. "The Court is also empowered to terminate their assistance or require them to withdraw their partnership in the Thai company," she said. For failing to honour such a court order, violators are subject to a daily penalty of Bt10,000 to Bt50,000.
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