[Intl-tobacco] More delays for Thai tobacco privatisation - maybe permanently delayed

Wed, 28 Aug 2002 13:30:18 -0700

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Bangkok Post, Wed 21 Aug 2002
PRIVATISATION
Thai Airways float delayed
Market conditions seen as unfavourable
Komsan Tortermvasana

The cabinet yesterday resolved to put off Thai Airways International's
plan to float 400 million shares, previously scheduled for October, to
the first quarter of next year due to unfavourable market conditions.

In discussing state enterprise privatisation plans, the cabinet viewed
that the national carrier could afford the delay, as it would need the
proceeds next March.

THAI planned to offer 400 million shares to the market, while Krung Thai
Bank and BankThai earlier scheduled share offerings by the end of the
year.

Under Thai Airways' scheme, 300 million capital-increase shares, plus
another 100 million shares held by the Finance Ministry, would be sold to
the public.

A government source said that the State Enterprise Policy Committee had
proposed earlier that if market conditions were not suitable for fund
mobilisation, the state enterprises that had scheduled public offerings
this year should be allowed more flexibility, and did not need to abide
so strictly by the privatisation frameworks.

A state enterprise chief said the cabinet decision came as no surprise,
as THAI share prices had been fluctuating of late and the stock was not
very appealing.

``Therefore, pushing the shares out for sale during this period will not
be good for THAI and the whole plan may be a flop,'' he said.

Thai Airways shares closed yesterday at 39 baht, up 25 satang, in trade
worth 6.94 million baht.

Earlier, the government agreed to allow three state enterprises _ the
Government Savings Bank, the Thai Tobacco Monopoly (TTM) and the National
Housing Bank _ to put off their public offerings indefinitely, and
instructed them to increase efficiency instead.

There is a possibility that the TTM may never be listed, even though it
is one of the most profitable state enterprises, because of the
government policy aimed at curbing smoking.

However, Srisook Chandrangsu, permanent secretary for Transport and
Communications, insisted that the initial public offerings of TOT
Corporation and the Airports Authority of Thailand would go ahead as
scheduled because the agencies were well prepared.

The two agencies had made impressive progress on privatisation and would
very likely go to the market this year, he said.

Within the next few weeks, he said, TOT Corp and its financial adviser
would propose the company's privatisation and business plans to the
ministry.

He said that the IPOs of both enterprises, which would likely come close
to each other, should not cause problems, as the targeted institutional
investors were from different markets.
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<P><SPAN LANG="en-us"><B><FONT COLOR="#800000" SIZE=2 FACE="Tahoma">Bangkok Post, Wed 21 Aug 2002</FONT></B></SPAN><B><SPAN LANG="th"></SPAN><SPAN LANG="th"></SPAN></B>

<P ALIGN=CENTER><B><SPAN LANG="th"><FONT COLOR="#800000" SIZE=2 FACE="Arial">PRIVATISATION</FONT></SPAN></B><SPAN LANG="th"> </SPAN></P>

<P><SPAN LANG="th"><B><FONT SIZE=4 FACE="Arial">Thai Airways float delayed</FONT></B> </SPAN>

<BR><SPAN LANG="th"><B><I><FONT FACE="Arial">Market conditions seen as unfavourable</FONT></I></B><I></I> </SPAN>

<BR><SPAN LANG="th"><B><FONT SIZE=2 FACE="Arial">Komsan Tortermvasana</FONT></B> </SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Arial">The cabinet yesterday resolved to put off Thai Airways International's plan to float 400 million shares, previously scheduled for October, to the first quarter of next year due to unfavourable market conditions.<BR>
<BR>
In discussing state enterprise privatisation plans, the cabinet viewed that the national carrier could afford the delay, as it would need the proceeds next March.<BR>
<BR>
THAI planned to offer 400 million shares to the market, while Krung Thai Bank and BankThai earlier scheduled share offerings by the end of the year.<BR>
<BR>
Under Thai Airways' scheme, 300 million capital-increase shares, plus another 100 million shares held by the Finance Ministry, would be sold to the public.<BR>
<BR>
A government source said that the State Enterprise Policy Committee had proposed earlier that if market conditions were not suitable for fund mobilisation, the state enterprises that had scheduled public offerings this year should be allowed more flexibility, and did not need to abide so strictly by the privatisation frameworks.<BR>
<BR>
A state enterprise chief said the cabinet decision came as no surprise, as THAI share prices had been fluctuating of late and the stock was not very appealing.<BR>
<BR>
``Therefore, pushing the shares out for sale during this period will not be good for THAI and the whole plan may be a flop,'' he said.<BR>
<BR>
Thai Airways shares closed yesterday at 39 baht, up 25 satang, in trade worth 6.94 million baht.<BR>
<BR>
</FONT><FONT COLOR="#0000FF" SIZE=2 FACE="Arial">Earlier, the government agreed to allow three state enterprises _ the Government Savings Bank, the Thai Tobacco Monopoly (TTM) and the National Housing Bank _ to put off their public offerings indefinitely, and instructed them to increase efficiency instead.<BR>
<BR>
There is a possibility that the TTM may never be listed, even though it is one of the most profitable state enterprises, because of the government policy aimed at curbing smoking.</FONT><BR>
<BR>
<FONT SIZE=2 FACE="Arial">However, Srisook Chandrangsu, permanent secretary for Transport and Communications, insisted that the initial public offerings of TOT Corporation and the Airports Authority of Thailand would go ahead as scheduled because the agencies were well prepared.<BR>
<BR>
The two agencies had made impressive progress on privatisation and would very likely go to the market this year, he said.<BR>
<BR>
Within the next few weeks, he said, TOT Corp and its financial adviser would propose the company's privatisation and business plans to the ministry.<BR>
<BR>
He said that the IPOs of both enterprises, which would likely come close to each other, should not cause problems, as the targeted institutional investors were from different markets.</FONT></SPAN></P>

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