Four firms’ shares to seek bids
The State Enterprise Policy Office (Sepo) will put up for auction the shares of four more companies by September, part of a planned divestment of nonlisted firms in which the Finance Ministry owns less than a 50% stake.
Sepo is considering the auction method for the shares of the four nonlisted firms, deputy director Piyawan Lamkitcha said without revealing names.
A committee will take responsibility for screening bidders and setting appropriate selling prices for the shares, she said, adding that the ministerial announcement for the auction will be issued in June.
New investors and existing shareholders are entitled to take part in the bidding. Those offering the highest price will be the winners, Ms Piyawan said.
Some of the interesting holdings that have not sold yet include assets of the Davis Group, she said.
Seized from former massage parlour tycoon Chuvit Kamolvisit, the four companies under the Davis Group are Davis Golden Star Co Ltd, Davis Copa Cabana Co Ltd, Davis Silver Star Co Ltd and Davis Diamond Star Co Ltd.
Since the divestment push began in 2017, Sepo has sold the Finance Ministry’s holdings in just two companies: Siam City Insurance Plc and Thai Maritime Navigation Co Ltd.
The stake sales generated millions of baht for Sepo, but the key benefit was relief from the management burden, including participation in shareholder meetings, Ms Piyawan said.
Moreover, some companies in which the Finance Ministry holds stakes have set criteria that those shares must be sold at a price fixed by the board of directors or sold to existing shareholders first.
The sales of these non-listed companies must be accelerated because holding them for a long time will be costly, Ms Piyawan said.
The cabinet earlier resolved to permit the Finance Ministry to sell shares in 24 non-listed companies in which the ministry owns less than 50%, as well as assets derived from foreclosures.
The ministry’s policy is to only hold stakes in companies that operate in strategic industries, including sectors crucial to the country’s development or those related to public services such as utilities or finance.