SCB and the Shin Corp Sale

Naphat wants to talk about

SCB and the Shin Corp Sale

@Bkk_R SCB were the bankers who structured the deal. I don't think they own shares in Shin itself. Cc @bangkokpundit

@naphat @bangkokpundit No so. SCB owed at least 10% of Cedar Holdings, which was set up to hold Shin shares. http://t.co/mKywqj1X

Naphat @naphat 14 Dec

@Bkk_R Cedar was part the nominee companies set up to avoid foreign ownership laws. Doubt they have much financial gain @bangkokpundit

JQ Public @Bkk_R 14 Dec

@naphat @bangkokpundit I wish it was that clear. Clearly, SCB was much more than just banker. It had substantial equity in Shin thru Cedar.

Naphat @naphat 14 Dec

@Bkk_R why would I award SCB with a stake, when half the bankers in town wanted the work. Cedar is sort of a shell company @bangkokpundit

JQ Public @Bkk_R 14 Dec

@naphat @bangkokpundit Let's not b naive. Dont u think SCB has had doors and financial windows opened because of its principal stockholders?

Naphat @naphat 14 Dec

@Bkk_R what doors need to be opened exactly? It's really no different from when telenor bought out dtac, other banks can do it.

JQ Public @Bkk_R 14 Dec

@naphat Except when TS did it, he was roundly criticized as unpatriotic or worse. Why criticize TS but not other like SCB who profited too

Naphat @naphat 14 Dec

@Bkk_R was talking about the deal itself, not the politics of course. SCB fees a drop in the bucket compared to SHIN proceeds.

JQ Public @Bkk_R 14 Dec

@naphat A Don't agree. 10% interest in Cedar, even as shell, cud hav considerable value. As I recall,TS clan held only 49% of Shin worth 79B

Naphat @naphat 14 Dec

@Bkk_R I'll dig up some docs, but if I remember correctly the shell companies are set up so 10% means essentially no control at the end.

bangkokpundit @bangkokpundit 12 Dec

[blog] Crown Property Bureau complicates its role by becoming a property developer http://t.co/HuuVQvoP

JQ Public @Bkk_R 12 Dec

@bangkokpundit I hav read CPB made huge profits when TS sold Shin to Singapore, largely thru its Shin holdings thru Siam CBk. Is it true?

Naphat

It's been a while, so I was incorrect on a few things:
- I confused Kularb Kaew with Cedar; KK is where the nominees were set up with two classes of shares. While they own the majority stake in KK, KK's bylaws indicate the Singaporeans control 90% + of the votes in company matters.
- SCB put it's own money into Cedar to be part of the deal that purchased SHIN shares for 49.20 THB a share. SHIN shares took a nosedive after the sale - I think it was a little above 24 THB at the end of 2007.
- Shares have rebounded in recent years, but it's a middling 5% a year return for their money. Pretty shabby for all the grief and bad press they got.