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Finance Ministry 'to sell 3 per cent of THAI stake to Vayupak Fund 1'

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Finance Ministry 'to sell 3 per cent of THAI stake to Vayupak Fund 1'

By THE NATION

 

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The Ministry of Finance will sell a part of its stake in Thai Airways International Plc (THAI) following the Cabinet’s resolution to reduce its shareholding to less than 50 per cent and end THAI's status as a state emterprise, the State Enterprise Policy Committee (SEPC) said.

 

 

“The Ministry of Finance notified the Securities and Exchange Commission [SEC], the Ministry of Transport and THAI on Friday [May 22],” SEPC director Prapas Kong-led said on Friday. “THAI will later have to notify the Stock Exchange of Thailand of its share status and that it is no longer a state enterprise, although the SEC may not officially declare this immediately.”

 

A source from the Ministry of Finance revealed that the ministry would sell 3 per cent of its shares in THAI to Vayupak Fund 1, which is jointly managed by Krungthai Asset Management Plc and MFC Asset Management Plc. This will lower the ministry’s shareholding in THAI from 51.03 per cent to 48 per cent and free THAI of state enterprise regulations which should facilitate the rehabilitation plan.

 

According to SET data as of April 1, the five major shareholders of THAI are:

 

▪︎ Ministry of Finance, holding 1,113,931,061 shares or 51.03 per cent

 

▪︎ Vayupak Fund 1 under MFC Asset Management Plc, holding 165,037,582 shares or 7.56 per cent.

 

▪︎ Vayupak Fund 1 under Krungthai Asset Management Plc, holding 165,037,582 shares or 7.56 per cent

▪︎ Thai NVDR Co Ltd, holding 71,645,528 shares or 3.28 per cent

 

▪︎ Government Savings Bank, holding 46,409,885 shares or 2.13 per cent

 

Source: https://www.nationthailand.com/news/30388364

 

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-- © Copyright The Nation Thailand 2020-05-23
 

 

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Smoke and Mirrors to deflect obvious questions being asked by the Public.   Sadly; it's carry on calamity !

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56 minutes ago, Misterwhisper said:

As long as the Thai state is still hanging on to almost 50% of ownership, there can be no rehabilitation. Even with "only" 48%, the Finance Ministry - and by extension meddling officials and politicians - will still have way too much sway and clout over the airline. Thai Airways (if not scrapped for good) should be fully privatized.

 

I am also a little suspicious about the other major shareholders. "Government Savings Bank" with 2.13%? Isn't that a state-controlled financial institution? And what about that dodgy sounding "Vayupak Fund 1" that soon will hold a not so shabby 15.12%? Who are the controlling shareholders there?

 

Somehow I have the impression that nothing will change as per Thai Airways ownership as shares are simply shifted around among the very same entities that ALREADY are the main shareholders anyway. 

Indeed Mr W .. This is a smoke and mirrors exercise ..

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59 minutes ago, Misterwhisper said:

 

 

Somehow I have the impression that nothing will change as per Thai Airways ownership as shares are simply shifted around among the very same entities that ALREADY are the main shareholders anyway. 

I think that is exactly what is happening. THAI is fully ingrained in the establishment here (just look at the flights they have still been running during the pandemic) and will never be able to become fully privatised. 

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The government is trying to obfiscate the fact they will sink millions of extra tax money in this sinking ship just for the status, job opportunities, and brown envelopes.

 

Nothing will change, and they have no reason to even consider changing anything unless there is some huge public outcry.

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2 hours ago, rooster59 said:

▪︎ Ministry of Finance, holding 1,113,931,061 shares or 51.03 per cent

2 BILLION shares ? Sure hope they don;t send letters out for every share

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 it is very much smoke and mirrors, but , at some point, as the smoke clears, Thailand's financial reputation and standing in the world is going to take something of  a dive.

As others have pointed out, it is just not possible to separate out Thai Air from the Thai Government. Now they are trying to wash their hands of it.  

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2 hours ago, Misterwhisper said:

And what about that dodgy sounding "Vayupak Fund 1" that soon will hold a not so shabby 15.12%?

You are completely right. This is a fund built on Government Bonds. There was already 2012 talks about shifting ownership of both Thai and PTT to this fund, which is controlled fully by the government.

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What gets me is this that the Gov't should not be making these decisions if Thai has officially declared bankruptcy. They have no right to do so.

The International Receivers & Accountancy firm who will in turn appoint specialists to  assess whats best.

Not a Government who has already shown it has no idea how to run an airline let alone one that is 

perfectly placed in geographic terms to be a great success

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How do you suggest they're getting around the Bankruptcy filing in the US? What smoke and mirrors will they be using there?

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This is going to be fun to watch.  My guess is that Thai will enter 'Administration'.  The appointed administrators will make a huge fee to find a new owner for Thai.  The new owner will sell off all the decent assets and leave a Face Saving state flag carrier. and the name will be Royal Thai Airlines 2020.  Lots of money to be made here.

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5 hours ago, rooster59 said:

▪︎ Ministry of Finance, holding 1,113,931,061 shares or 51.03 per cent

 

▪︎ Vayupak Fund 1 under MFC Asset Management Plc, holding 165,037,582 shares or 7.56 per cent.

 

▪︎ Vayupak Fund 1 under Krungthai Asset Management Plc, holding 165,037,582 shares or 7.56 per cent

 

▪︎ Thai NVDR Co Ltd, holding 71,645,528 shares or 3.28 per cent

 

▪︎ Government Savings Bank, holding 46,409,885 shares or 2.13 per cent

So basically still state controlled... no new face is going to have a free say in anything, this is just window dressing.

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Judging from a number of comments to my original assessment, I was spot on.

 

Nothing's going to change in de-facto ownership by simply redistributing a tiny percentage of the Finance Ministry's majority shareholdings to other, thinly-disguised government-controlled entities.

 

Meanwhile, Mr. Prayuth has announced that due to bankruptcy proceedings no debts that the airline has accumulated will be settled and no creditor claims will be honored.

 

Can it really be that easy?

 

In a few years they are going to pull off the same charade again. Unfortunately, there still will be more than enough gullible investors who once again sink money into a state-controlled enterprise that can at any point "cancel" all debts at the whim of the government.

 

Now the Thais reportedly are moving to file for bankruptcy in the U.S. as well in order to "prevent U.S. creditors from seizing aircraft and other Thai Airways assets". I really hope the U.S. courts are not going to have the wool pulled over their eyes in such a blunt manner. Nor should the Europeans. But I fear they will allow themselves to be duped all the same.   

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