SCCC vowsto 'adapt' to legal changes.
FOREIGN BUSINESS / SHAREHOLDING STRUCTURES
Siam City Cement Plc, a subsidiary of the Swiss cement group Holcim, is studying the reforms of the Foreign Business Act (FBA) and its impact on the company. Leo Mittelholzer, SCCC's president, said the company was ready to comply with all laws.
''The government always has the final say; we need to collaborate with the state by complying with the law. That's all I can say,'' he said yesterday.
''Basically, the impact of the regulation on us would be predictable. I truly don't want to comment much about this,'' he said with a bitter laugh. ''We can only wait and see what will happen tomorrow and adapt ourselves to stay in the business as best as we can.''
SCCC, the country's second largest cement producer, operates under List 2 of the Foreign Business Act and holds several concessions for limestone mining in Saraburi province.
The company also wants to acquire more stone concessions to develop its new aggregates business.
SCCC was one of more than a dozen major companies singled out last year for scrutiny by the Business Development Department in an investigation into the use of nominee vehicles by foreign investors to evade shareholding limits under the FBA.
As a List 2 company, SCCC would potentially have up to two years to reduce foreign voting control over the firm and one year to reduce foreign shareholdings, both direct and indirect.
SCCC shares closed yesterday on the Stock Exchange of Thailand at at 238 baht, down four baht, in trade worth 48.3 million baht.
Bangkok Post
Thursday January 11, 2007
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