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Thai govt. cuts Thai Airways stake to below 51% as part of restructuring plan

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Thai govt. cuts Thai Airways stake to below 51% as part of restructuring plan

 

2020-05-23T100944Z_1_LYNXMPEG4M0C5_RTROPTP_4_THAI-AIRWAYS-RESCUE.JPG

FILE PHOTO: Thai Airways airplanes are parked at the tarmac of Suvarnabhumi Airport in Bangkok, Thailand March 25, 2020 REUTERS/Jorge Silva

 

BANGKOK (Reuters) - The Thai government lowered its equity ownership in Thai Airways International PcL <THAI.BK> to below 51% by selling a 3.2% stake, a regulatory filing showed, as part of the rehabilitation process for the troubled national carrier.

 

The Thai Finance Ministry offloaded 69.2 million shares to a mutual fund run by state-owned Krung Thai Bank PcL <KTB.BK>, a Finance Ministry filing to the Securities and Exchange Commission (SEC) on Friday showed. The filing did not disclose the sale price.

 

The sale reduced the Thai government stake in Thai Airways to 47.86% from 51.03%, ending the airline's status as a state-owned enterprise, one of the steps included in the restructuring plan of the national carrier.

 

Under Thai law, state-owned companies are governed by a set of management and labour regulations more rigid and restrictive than private companies.

 

Thailand's cabinet earlier this week approved a plan to restructure the airline's finances through a bankruptcy court after rejecting an initial plan to bail out the company through emergency loans.

 

The airline would continue to operate as usual while the restructuring takes place, the company said.

 

Thai Airways has been in financial trouble even before the outbreak of the coronavirus as it posted losses every year after 2012, except in 2016.

 

(Reporting by Panu Wongcha-um and Chayut Setboonsarng; Editing by Muralikumar Anantharaman)

 

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-- © Copyright Reuters 2020-05-24
 
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19 minutes ago, kotsak said:

Smoke and mirrors.. Who are they trying to fool by selling a puny stake to a fund that has government written all over it? 

Its a very significant amount, meaning the Finance Ministry's stake is less than 50% enabling the restructure to take place of a privately owned rather than Government owned airline, at least on paper.

 

 

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1 hour ago, kotsak said:

Smoke and mirrors.. Who are they trying to fool by selling a puny stake to a fund that has government written all over it? 

They are like teenagers hiding porn magazines in their underwear drawer thinking nobody will find them 

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Let's see if their clever plan can fool the US bankruptcy lawyers and court

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"The filing did not disclose the sale" is irresponsible and must violate government transparency laws.

Purchase was originally made by State taxpayer funds. There should be clear transparency and accountability of such subsequent sale to prove no corruption and/or mismanagement of taxpayer funds.

 

However, if the State admits that the sale was a disguised transfer to another government entity or state-owned entity improperly termed as a "private sale", then the transfer is not in substance a sale to a nongovernment private party and so no further disclosure is required. However, such might be affected by the degree, if any, that THAI has formally filed for bankruptcy.

 

The SEC should review this "sale" for compliance with its regulations and laws to assure public confidence in the legitimacy and adequacy of the information provided by the government on this transaction.

 

 

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Most appropriate OP picture of a sunset with the TG emblem plane tail fins in the center.

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So typical thai. First violate their own laws concerning business regulation which has always been 51/49 % ownership. Transfer restructuring over to the evil farang majority owners and then direct all blame when massive layoffs are implemented. Finally, re-nationalize the airline when it's out of the red and take control using the 'laws' requirements of 51/49%. So typical. 

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This just continues to be more ridicolous. Just as you thought it reached it s peak about stupidity and now they sell shares t a government owned bank. how long can the Thai people just sit and look at what the army are doing. They are purely laughing in their face since the coup..

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