Share prices of the Shin Group Of Companies this week continued to nosedive, as investors were concerned over future revisions in the concessions awarded, mainly to Advanced Info Service and Thaicom.
Shin ended the week at Bt21.50, down 8.26 per cent from last week; AIS slumped 12.78 per cent to Bt76.75; and Thaicom plunged 26.61 per cent to Bt4.40. Total Access Communication also suffered from a domino effect, losing 5 per cent to Bt33.
“Any lawsuit against AIS would hit its share price. Meanwhile, though Thaicom is signing a new satellite service deal in India this month, the share price does not reflect the good news as its concession could be nationalised like iTV,” Chaiyaporn said.
Siam City Research Institute said that the risk was high that AIS and Thaicom might need to pay compensation to state agencies for any gains from policy changes during the Thaksin era. AIS would be hit hardest if it was ordered to pay compensation and then ordered to adhere to the original revenue-sharing format as specified in the original concession.
It is highly likely that AIS may need to remit 30 per cent of pre-paid revenue to its concession owner, TOT. Yet, SCRI noted that the actual financial impact, if any, would not take place this year, as the court cases will take time.
In the past week, AIS’s market capitalisation was hit by Bt5.18 billion while that of Thaicom plunged by Bt2.46 billion.
BP: As the article notes the matter will be before Cabinet this week, so will DTAC also need to revert to the old contract given the “damage” to the state caused by the change in their concession? Will Thaicom be nationalized?