Tycoon ready to pull out of Thanasin Insurance rescue
A group led by property tycoon Boon Vanasin will back away from rescuing cash-strapped Thanasin Insurance if it cannot get a commitment for funding from a Chinese partner on Monday.
"I'm not ready to pump in more than Bt400 million, so I had to find a partner. Next Monday we will find out whether the new partner can put up the funds. If the deal fails, I'll pull out right away. Then it will be up to the Insurance Department to decide [whether to shut down the insurer]," Boon said yesterday.He said that at first the group planned to inject Bt400 million to rescue Thanasin but after studying the insurer's books, it found that more than Bt500 million was needed - Bt300 million for reserves and Bt200 million for outstanding claims. Thanasin's liabilities total Bt500 million, according to the Insurance Department, which suspended Thanasin'soperations in mid-March after it failed to maintain capital funds as required by the Non-Life Insurance Act. Boon said his company planned to take over a few listed companies, which would benefit his existing businesses, including hospitals, construction companies and developers. He would at first accumulate shares, then launch a tender offer. Some Bt500 million will be spent on this acquisition spree. Boon might toss in Bt50 million to Bt100 million of his own money in the stock portfolio. He started dipping into the market two weeks, focusing on stocks with good fundamentals and large market capitalisation. He will hold the securities for six to nine months. "In the past two weeks, our investment has yielded around 5-6 per cent. We are optimistic in the trend," he said. Boon, chairman of Piyavate Hospital, said the hospital was struggling to make its profit target but he still planned to list it on the stock exchange within two years. He revised its revenue growth target from 25 per cent to 15 per cent this year. Siriporn Chanjindamanee The Nation
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