Feb. 18 (Bloomberg) -- Singapore’s Temasek Holdings Pte has held talks about selling its stake in Thailand’s Shin Corp., according to three people familiar with the matter.
The state-owned investment company has held discussions with Singapore Telecommunications Ltd., two of the people said, asking not to be identified because the deliberations are confidential. Political tension in Thailand has hurt prospects for reaching a deal, another person said.
Temasek is Shin’s biggest shareholder with a 41.6 percent holding, according to data compiled by Bloomberg. The stake would be worth about $3.1 billion based on the current market price. Shin holds a stake in Advanced Info Service Pcl, the biggest mobile-phone company in Thailand.
Shin shares fell 2 percent at the close in Bangkok, snapping seven days of gains. Thailand’s benchmark SET Index fell 0.5 percent.
A spokesman for Temasek declined to comment, as did Michele Batchelor, a Singapore-based spokeswoman at SingTel. Reuters reported earlier that Temasek has been trying to sell its stake and has held talks with SingTel, citing unidentified people. Temasek owns 51.9 percent of SingTel.
Temasek sold 20.9 billion baht ($644 million) of shares in Shin in January last year.
Months of political unrest have hurt local demand and tourism as demonstrations against Prime Minister Yingluck Shinawatra turned violent and paralyzed parts of Bangkok. Thailand’s economy grew at the slowest pace in almost two years last quarter, a government report showed yesterday.
To contact the editor responsible for this story: Philip Lagerkranser at firstname.lastname@example.org