Shin Satellite, Asia Mobile form partnership

14 Jun 2007

(Report via NewsEdge) Shin Satellite has agreed to sell a 49% stake in Shenington Investments to Asia Mobile Holdings (AMH) for a consideration value of $200 million.

Shenington is an investment holding company with a 100% stake in Cambodia Shinawatra Co. Ltd. (CamShin) and a 49% stake in Lao Telecommunications Company Ltd.

Under the agreement, AMH will invest $200 million in cash for a 49% equity stake in Shenington, while Shin Satellite will remain the controlling shareholder with a 51% stake.

The transaction values Shenington at an equity value of approximately $400 million.

The strategic partnership combines the deep regional experience and technical expertise of Shin Satellite and AMH, two major telcos in Southeast Asia.

"The partnership with AMH represents a key milestone for Shin Satellite and the future growth of telecommunications services in Cambodia and Laos. We believe there will be significant benefits and synergies created from this transaction and are excited to welcome AMH as our new strategic partner," said Dr. Dumrong Kasemset, executive chairman of Shin Satellite.

"The formation of this strategic alliance based on common objectives will bring significant long-term value to our shareholders," he added.

© 2007 Dialog, a Thomson business. All rights reserved.

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