Thai stock exchange says new investment law affects few listed companies |
|
|
|
Published
:
Wed, 10 Jan 2007 04:41
|
BANGKOK (XFN-ASIA) - The Stock Exchange of Thailand said only about 15 listed companies, mainly in telecoms and property, are likely to be affected by the new restrictions on foreign investment under the revised Foreign Business Act.After a preliminary study of public companies, SET president Patareeya Benjapolchai said that most of the nearly 500 listed firms fall into sectors that are exempted by the new law.'About 15 businesses ... may have to adjust their shareholdings to meet the revised definition,' the SET said in a statement.Thailand's military-installed government yesterday agreed to limit foreign investors to holding no more than 50 pct of the shares or the voting rights in companies.The cap applies to companies that deal with areas considered important to national security, or that have an impact on natural resources or Thai culture, Finance Minister Pridiyathorn Devakula said.Foreign investors in violation of the new limits will have a year to reduce their stakes and two years to reduce their voting rights, he said.Prime Minister Surayod Chulanont said yesterday the Council of State is 'authorized to work on the details to make the law precise and transparent, without any need to be resubmitted for cabinet approval again.'Companies have traditionally set up their operations in Thailand so that the local subsidiaries are nominally owned by Thais but controlled by foreigners.The practice became controversial last year after investors led by Singapore's Temasek Holdings bought 96 pct of telecom firm Shin Corp, also giving it key stakes in Thailand's biggest mobile operator, a satellite company, a television station and an airline.afp
|
|
|
|
|
|
Print this Story
LSE gets a surprise offer from Nasdaq, rejects it as too low 