Singapore’s sovereign fund Temasak, strikes ultra-rich-return, in 7 years of buying Shin Corp

Thailand's Prime Minister Thaksin Shinawatra i...

Thailand’s Prime Minister Thaksin Shinawatra in a meeting at the Pentagon. (Photo credit: Wikipedia)

Singapore‘s Sovereign Fund, Temasak, after buying Shin Corp from Thaksin about 7 years ago, has paid out about US$2 billion in dividend and saw the share price double in value. However, source told Prachachart Turtakij, a business newspaper in Thailand, that Temasak will continue to divest from Shin Corp, from about 96% 7 years ago, to the current 44%, with the objective of holding about 25% of the shares. Thaksin sold Shin Corp to Temasak, with the rationale that he was entering politics and wants to escape conflict of interest charges. But few with the elite establishment listened to Thaksin, and charged him with the combination of conflict of interest and that Thaksin sold out Thailand, by selling Shin Corp to a foreign firm. Thaksin said he tried to sell the firm to Thai interest t there was no buyer. Thaksin involvement in telecom empire while a prime minister, eventually lead to the court nationalizing most of what Thaksin made before entering politics, away from him. Temasak, have in the past came under fierce criticism of making bad investment decisions, and Temasak underwent many re-organization. Initially, the Shin Corp deal looks to sour as the deal got embroiled in the Thai elite establishment going after Thaksin. Temasak, currently, is focusing its investment on Eurozone and the USA, anticipating a recovery in a few years.


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