Surin Upatkoon and Kularb Kaew
'I am not a nominee'Bangkok Post Article: August 21, 2006
Little-known tycoon Surin Upatkoon talks with Chiratas Nivatpumin and Nuntawun Polkuamdee at his offices in Kuala Lumpur about the controversy over his investment in Kularb Kaew
Surin Upatkoon offers a wan smile and a shrug. "I strongly believe that my case basically boils down to politics. Under normal circumstances, this kind of investment wouldn't attract this kind of interest at all."
But the reclusive 57-year-old tycoon now stands firmly in the limelight, following his US$70 million investment in March to take an indirect stake in the local telecom giant Shin Corp.
The Commerce Ministry has launched an investigation into whether Mr Surin is acting as a nominee for Singapore's Temasek Holdings to control Shin in a possible violation of Thai law.
The landmark case is being closely watched by the Thai and foreign business communities. A ruling against Shin could not only hurt the company's television, telecommunications, satellite and aviation units, but would also raise questions about the legitimacy of thousands of foreign joint ventures in Thailand that have operated for years using nominees to skirt foreign shareholding limits.
For Mr Surin, the public attention marks a decidedly poor welcome for his first business investment in Thailand.
"I am Thai. What did I do wrong? I am not someone without standing. I have every right and the ability," he said.
"Everyone is saying that I'm a nominee for Temasek. It's more politics than anything else. For me, with my position today, why would I want to be a nominee for someone else? I am not a nominee."
Mr Surin said all he wanted was "fair treatment" from the Commerce Ministry.
"My investment in Shin has nothing to do with politics. I intend this as a long-term investment," he said.
Better known in Malaysia as Dato' Lau Kim Khoon, Mr Surin is a major shareholder and director of three listed companies with a combined market capitalisation of $1.1 billion: Magnum Corp, Malaysia's oldest and largest licensed lottery operator; MWE Holdings Berhad, a conglomerate with interests in electronics, textiles and property; and Multi-Purpose Holdings Berhad, a holding company with interests in gaming, financial services and stockbroking.
His involvement in Shin started shortly after the Temasek deal was announced, when Goldman Sachs, Temasek's financial adviser, contacted him about a chance to participate in the transaction.
For Temasek, Mr Surin's investment helps Shin remain majority owned by Thais.
For Mr Surin, the deal was a golden opportunity to make his first investment in his mother country.
"Sometimes you might want to [invest], but it's all about opportunity. When the opportunity comes, you take it," he said in his 40th floor offices high above the Kuala Lumpur skyline.
"Some people ask me, why did you make the decision to invest in Shin, and for such a big amount, all in just a few weeks? I reply, sometimes you make a decision just overnight. If it's a good opportunity, you have to grab it."
He shrugged. "I looked at the numbers, looked at the partners, looked at the people. I have a lot of confidence in Khun Boonklee [Plangsiri, the Shin chief executive officer]."
Mr Surin, who has a personal net worth of $750 million, now owns a 68% stake in Kularb Kaew, a holding company set up by Temasek.
Kularb Kaew in turn holds 45% of Cedar Holdings, which together with Temasek and Siam Commercial Bank, hold 55% of Shin. Another 42% of Shin is owned by another Temasek holding company, Aspen Holdings.
The Temasek buyout, the largest takeover in Thai history, netted the Shinawatra family a payout of 73 billion baht for their 49% stake. Prime Minister Thaksin Shinawatra said the deal marked his exit from the business arena and his full commitment to national politics.
But the deal has proven to be a political nightmare for Mr Thaksin, after opponents claimed that the tax-free nature of the transaction and the use of offshore holding vehicles were evidence of illicit activity by the Shinawatra family.
Mr Surin grimaces at the thought that his investment has now been caught up in Thailand's political maelstrom.
"Before the deal, I knew of Shin, but not in detail. As for Mr Thaksin, I have met him once, years ago. I don't think he remembers me," he said.
"It is purely business. I am Thai, and wanted and was willing to invest my own money. What's wrong with that?"
He laughed. "In any business, you cannot always think of all the angles. Sometimes there are certain calculated risks that you have to take. But politics isn't something that is easily understood.
"The telecoms business is definitely a good one, with a lot of potential and future ahead. Most of the businesses inside Shin, we went through them, they are very good. That's why I made the decision to go in."
Mr Surin left Bangkok in his early teens to study at a Chinese school in Penang, and later joined his father to work at the family's textiles firm, a business that continues today through MWE Holdings.
"I am definitely Thai. I have been here for the past 40 years, but I have never considered myself any different," he stressed, adding that his two daughters and only son also hold Thai citizenship.
Fluent in Thai, English and several Chinese dialects, Mr Surin acknowledged that his penchant for privacy has added to the public questions over the Shin investment.
"I think I am now better known in Thailand," he says dryly. "I wouldn't say that it has been difficult, but it has been an experience."
"A lot of people don't understand Temasek. If you talked with anyone outside [Thailand], no one would believe that Temasek would do anything illegal or use nominees."
Mr Surin said he was earnest in helping Shin, and hoped to increase his investments in Thailand in the future.
"[Shin] still has a lot of potential, particularly when compared with countries such as Malaysia or Singapore," he said, adding that he believed Shin's stock, now trading at 32 baht each, was worth double the price.
Leisure time is devoted to golf, scuba diving and yachting. And while Mr Surin never attended university, he is a strong supporter of education, making philanthropic contributions of around 80 million baht each year to various charities.
Mr Surin said that while in the past, trips to Thailand were mostly family visits or for vacation, business would increasingly become the focus in the future.
"I would consider other investments in Thailand. But I have to make sure this one goes well first."
