Telecom investment group InTouch Holdings Plc says the sale of an 8% stake in its shares by two subsidiaries of Singaporean giant Temasek Holdings on Thursday will have no bearing on the operation and management of the company.
Tomyantee Kongpoolsilpa, senior vice-president for portfolio management and investment relations at InTouch, said Temasek has gradually reduced its InTouch shareholding through several transactions and this was a normal adjustment of the fund.
Temasek has no representative on InTouch's board of directors, Ms Tomyantee said.
Unlike Temasek, Singtel Global Investment Pte serves as a strategic partner with InTouch and its subsidiary Advanced Info Service (AIS) Plc.
One Singtel representative sits on InTouch's board of directors and another on the AIS board.
Ms Tomyantee said Temasek has received dividends and capital gains from the investment in InTouch for a decade and such a portfolio adjustment is a normal action.
Pisut Ngamvijitvong, a senior analyst at Kasikorn Securities, agreed, saying the move was a normal adjustment by Temasek.
Foreign funds such as Temasek are more interested in investing in non-listed companies, including tech startups, that could create higher investment returns, Mr Pisut said.
These startups have business growth potential and could be listed on the stock exchange in the future, he said.
According to Mr Pisut, such startups are normally located in emerging markets such as Vietnam and Myanmar.
InTouch is a holding company with investments in the telecom, media and tech sectors. It is the major shareholder of AIS and Thaicom Plc.
Mr Pisut deemed it unlikely that Temasek would want to sell AIS shares, since the company still generates a significant return to Temasek.
Somchai Lertsutiwong, chief executive of AIS, declined to elaborate on the details of the big-lot transaction of InTouch shares, saying it was a matter for the company's shareholders.
He became aware of the transaction through a news release.
An executive at InTouch who requested anonymity said the big-lot transaction is a usual adjustment of Temasek's investment portfolio. The executive said other funds are still interested in buying the company's stake.
On Thursday, two Temasek subsidiaries -- Aspen Holdings and Anderton Investments Pte -- sold 257.1 million InTouch shares worth 15.62 billion baht, accounting for an 8.02% stake.
Aspen sold all its InTouch shares, which accounted for a 2.11% stake.
After the transaction, Anderton, which earlier held a 15.9% stake, will have a 9.9% stake.
The 257.1 million shares were sold at 60.75 baht per share. InTouch shares closed at 61.25 baht on Thursday, a significant drop from 64.50 baht a day earlier.
After the big-lot transaction, Temasek still holds 10% of InTouch, down from 18%.