The Finance Ministry does not have any plans to divest from PTT Oil and Retail Business (OR), citing the impressive capital gains in the newly SET-listed firm, says Pantip Sripimol, director-general of the State Enterprise Policy Office (Sepo).
The ministry exercised its right as a shareholder of national oil and gas conglomerate PTT Plc to buy shares in the OR initial public offering, with funding available from share sales in another firm worth about 3 billion baht. She said the decision was both lucky and fortunate.
According to the Stock Exchange of Thailand, the ministry now holds 153.34 million shares in OR, representing 1.28% of the total, with PTT holding a majority stake as high as 75%.
Nevertheless, Ms Pantip said Sepo remains committed to cabinet plans to dispose of Finance Ministry shares held in non-listed, privately owned companies.
It has already sold certain parts of the ministry's holdings, she said.
Financial advisers are preparing the divestment procedures, said Ms Pantip.
Despite a poor economy battered by the pandemic, Sepo is continuing to divest ministry holdings if there are decent sale prices, she said.
The cabinet on Sept 27, 2017, resolved to permit the Finance Ministry to sell shares in non-listed companies in which the ministry owns less than 50%, as well as assets that were derived from foreclosures. The auctions are to comply with the five-year divestment plan through 2021.
Ms Pantip said the ministry's policy is to only hold stakes in companies that operate in strategic industries, or in sectors that are crucial to the country's development, or if they are related to public services, such as utilities or finance.
The divestment policy aims to fetch prices higher than those the ministry paid to prevent any financial damage, while the selling period should be appropriate, she said.
Between 2017 and 2018, Sepo announced the sale of non-listed securities of 24 privately owned companies held by the ministry, but only managed sell off two: Thai Maritime Navigation and Siam City Insurance Plc.
Other non-listed securities held by the ministry include Phitsanulok Hospital (3 million shares); pulp and paper manufacturer Royal Craft Ltd (125,000 shares); limestone miner Chonsin Co (105,000 shares); Lamphlai Parawood Co (40,000 shares); Thaksin Laundry Co (25,000 shares); and four companies under the Davis Group, seized from former massage parlour supremo Chuvit Kamolvisit (46,000 shares).