BANGKOK, Oct 7 (Reuters) - Shares in Thailand's Shin Corp SHIN.BK jumped nearly 19 percent on Wednesday on expectations a plan by Singapore's Temasek Holdings [TEM.UL] to sell its stake in the telecoms group would boost share liquidity.
Shin Corp Director Somprasong Boonyachai said the plan by several Thai firms to acquire shares, if it goes through, would be positive, a local newspaper quoted him as saying.
“If there’s really a stake sale, it would help improve the company share liquidity from just 3 percent which is freely floated now,” Somprasong said.
A plan by Singapore’s Temasek to sell its 96.12 percent stake in the company would depend on market conditions, an official at the Thai firm has said. [ID:nBKK506842]
By the midday break, Shin shares had advanced 18.7 percent to 31.75 baht, coming off 34.25, its highest since July 26, 2007.
The stock was the top most active, with turnover accounting for 2.4 percent of total trade. The main Thai stock index .SETI was up 1.9 percent.
Shin was founded by former Prime Minister Thaksin Shinawatra and control was sold to Temasek by his family in 2006.
Shin’s free float dropped to under 4 percent, below the 15 percent threshold required by the Stock Exchange of Thailand, following Temasek’s $3.8 billion takeover.
The Singapore state investment firm, which holds 96.12 percent stake in Shin via its two Thai-registered companies, had planned to dilute its holding in Shin Corp to 49 percent.
Globlex Securities rates the stock a ‘speculative buy’. ($1= 33.33 Baht) (Reporting by Ploy Ten Kate and Viparat Jantraprap; Editing by Jason Szep)
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