DECISIONS ON EGAT LISTING, SCHOOL TRANSFERS: It 's make or break day
Fate of privatisation plans rests on court verdict today; opponents vow to fight on.The Supreme Administrative Court will make a landmark ruling today on whether an injunction will be issued to halt the initial public offering (IPO) of Egat shares in the wake of mounting public opposition by civil society groups. Egat Plc, formerly the state-owned Electricity Generating Authority of Thailand, is scheduled to be listed on the Stock Exchange of Thailand tomorrow.
If listed, Egat, the country's largest electricity company, will be one of Thailand’s largest IPOs, with about Bt34 billion raised from Thai and foreign investors.
But opponents will issue a warning to foreign investors today of possible negative consequences because of ongoing opposition to the sale of Egat shares.
A draft letter with the warning will be submitted to foreign embassies in Bangkok by groups opposing the IPO - led by the Confederation of Consumer Organisations Thailand (CCOT), Alternative Energy Project for Sustainability, the Four Regions Slum Network, Alternative Agriculture Network, FTA Watch and other civil groups.
The letter, signed by Piroj Polpech, chairman of CCOT on behalf of the civil society organisations concerned, will be handed to the US and other major diplomatic missions here.
The lawsuit jointly filed by civil society organisations has asked the Supreme Administrative Court to put the Egat share sale on hold. These opponents claim that privatisation and the sale of Egat shares would lead to higher electricity prices, and thus seriously hurt poor consumers.
"We would like to inform your embassy that we will fight to the bitter end to oppose the sales of Egat Plc’s shares. Our struggle to protect the public interest may cause grave financial risks to foreign investors expecting to buy and profit from shares in Egat. Please be warned accordingly and inform investors in your country," the letter said.
Energy Minister Viset Choopiban spent more than two hours defending the Egat IPO plan before the court yesterday, arguing that an injunction would seriously damage the national economy and stock market.
"Our reputation and image in the eyes of foreign investors will be hurt [if the IPO is stopped]," he told the court.
Rossana Chotitrakul, who works for a national consumer protection foundation, said the government had not prepared sufficiently to protect the rights of consumers, who would be negatively affected by the sale of Egat shares.
Nakorn Chompoochart, a lawyer representing civil society groups, said opponents sought a court injunction because Thai investors would also be hurt if they subscribe to the Egat shares.
Meanwhile, Finance Minister Thanong Bidaya said the ongoing opposition against the Egat IPO stemmed from a lack of understanding about the privatisation programme.
"Earlier, there was also a strong opposition to the share sales of PTT Plc. The company is now one of the best-managed corporations in Asia," Thanong said.
Charun Hattakam, a senior judge of the Supreme Administrative Court, said the court was ready to deliver its verdict, as scheduled this afternoon.
"There will be no further postponement since that would cause further damage. Demonstrations by opponents of the listing will have no effect on the court’s verdict," the judge said.
Dozens of demonstrators opposed to the share sale rallied in front of the offices of Supreme Administrative Court at Bangkok's Empire Tower yesterday.
In addition, hundreds also rallied at the headquarters of Egat. More than 10 were injured when protesters were pushed back by police and security guards.