Want to know know why there has been massive volume in the market over the past week?

Temasek Holdings Pte and its partners sold 20.9 billion baht ($687 million) of Shin Corp. (INTUCH) shares, paring its stake in the company that controls the biggest Thai mobile-phone operator.

Singapore’s state-owned investment company and its partners in Cedar Holdings Ltd. sold 330 million Shin shares at 63.25 baht each, Shin said in a statement. That was a 5.6 percent discount to the close yesterday, and cuts the group’s stake to about 13.3 percent from 23.6 percent, according to Shin.

Source: Bloomberg

So what?

Well its basic mathematics, Temasek made just over 50% in capital gains (excl. divs) in INTUCH, they are halving their investment to be equivalent to its original stake. However if there are continued share sales by the group, don’t be surprised to see further downside in INTUCH as more shares will hit the market.

  1. I own INTUCH. I bought it at 36 baht per share so I have a large profit on my shares. I understand that you can only make a guess, but if Temasek Holdings sells the rest of their INTUCH shares what is your guess on how much the share price will drop or correct? And are there any problems at INTUCH that you know of that made Temasek sell so many shares? Any comment is appreciated !

    • Well there has been news regarding THCOM’s (which INTUCH owns) subsidiary Mfone being shut down, however THCOM has already provisioned this and really ADVANC contributes the most for INTUCH’s revenues.
      I really think its simple allocation within Temasek’s own portfolio, their holding value increased 50%+, its performed well, thus in terms of portfolio allocation they may simply have wanted to rebalance.

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