Finance Ministry seeking cabinet nod to sell shares

The Finance Ministry is preparing to propose to the cabinet in December the sale of both listed and unlisted shares held by the ministry. This will involve over 100 enterprises in which the ministry holds a stake of less than 50%.
As the chairman of the Committee on State Securities Management and Development, finance permanent secretary Lavaron Sangsnit said on Monday that the goal of selling both listed and unlisted shares held by the Finance Ministry at present is to maximise the management and benefits of the shares held by the ministry.
He said the committee has already discussed and finalised the approach to selling the shares.
This would mean the number of listed or unlisted companies in which the ministry holds a stake would be reduced from 133 at present to around 20.
Tibordee Wattanakul, director-general of the State Enterprise Policy Office (Sepo), said the Committee on State Securities Management and Development has held two meetings to discuss the approach for selling shares held by the Finance Ministry and reached the conclusion to reduce the number of companies from 133 to some 20.
The shares set to be sold are those in which the ministry holds a relatively small stake of about 5-10%, he noted.
Mr Tibordee said most of the shares proposed for sale are those the ministry acquired through legal circumstances or from businesses listing their shares on the stock market, in which the ministry holds no management control.
Additionally, the stock prices have declined or no longer yield a return for the government, he said.
Currently, the total value of the shares held by the Finance Ministry in both listed and unlisted entities — excluding shares in state enterprises and the Vayupak Fund — stands at 30-40 billion baht. After the sale, the value of the remaining shares would be no more than 5 billion baht.
However, the proposed sale must be approved by the cabinet, which will decide which shares the ministry should retain based on whether they align with the ministry’s mission.
When it comes to other shares, Sepo will be authorised to proceed with the sale.
Regarding the sale price, Mr Tibordee acknowledged that this is a complex issue, as selling shares at a price lower than the original purchase price could lead to complaints.
Therefore, Sepo is seeking advice from the State Audit Office on whether it is permissible to sell shares below their acquisition cost.
He said Sepo has already formally inquired with the State Audit Office whether it can sell shares below the cost price, as some shares have been underperforming for a long time and are unlikely to recover to their original value.
Holding on to such shares could result in further price declines and a management burden, according to Sepo.