The Stock Exchange of Thailand (SET) yesterday reiterated it would take no action against Shin Corp Plc or its listed subsidiaries while the Commerce Ministry proceeds with its investigation into nominees.

"In focus now is Shin Corp's free-floats," said SET executive vice president Suthichai Chitvanich. "If the Commerce Ministry's investigation finds there were nominees involved in the takeover of Shin Corp, then we will ask Shin Corp to reveal the effect on the company's business to investors. At this time, we will take no action."

The SET has been under heavy criticism for its inaction against Shin Corp and its subsidiaries in the light of allegations that nominees could have been involved in Singaporean investment arm Temasek Holdings' takeover of Shin in January.

Suthichai's comments came a day after the results of the nominee investigation by the ministry's Business Development Department were leaked to the press. The ministry did not officially reveal the results, which indicated the involvement of nominees in the deal, although the investigation was believed to have been completed some time ago. Instead, the ministry appointed a new investigative committee, with Deputy Permanent Secretary Yangyong Phuangrach as chairman.

Suthichai noted that if Shin's subsidiaries are operating in industries that are overseen by various state agencies, it is those agencies that will determine if business licences or concessions should be revoked if the ministry's investigation showed nominees were involved in the takeover deal.

"That would be another story," he said.

For Suthichai, the exchange is now concerned only about Shin's free-floats, the ratio of shares held by minor shareholders. Shin's free-floats are now 3.85 per cent, well below the requirement of 15 per cent of total issued shares. Temasek Holdings-related Cedar Holdings and Aspen Holdings now hold a combined stake of 96 per cent in the Thai telecom holding company.

Both companies are now the focus of the Commerce Ministry's nominee investigation, aside from Kularb Kaew and Cypress Holdings.

Suthichai said the SET in May asked Shin Corp to rectify that ratio, and the company has a year from that date to comply. Once the deadline passes, Shin can ask for another year.

If the company cannot comply with the rule by May 2008, Shin shares would be tradable on the Call Market trading board, where no real-time share transactions are permitted. Investors who want to buy or sell shares in the companies tradable on the board have to wait for matching services from market-makers.

"Other than that, Shin Corp is qualified to remain on the bourse, given that the number of minor shareholders exceeds the minimum requirement of 150. The number of Shin Corp's minor shareholders is now 1,294," he said.

Siriporn Chanjindamanee

The Nation