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Deutsche Post World Net
to increase stake and to take majority in DHL International
Strategic reinforcement prior to Deutsche
Post Group’s IPO
Deutsche Post (DPWN) and DHL International recently
announced that DPWN is poised to increase its stake in the express service
provider DHL International to 51 percent in January 2001. The Chairmen of
both companies, Dr. Klaus Zumwinkel (DPWN) and Patrick Lupo (DHL
International) in Paris, together made the announcement.
This step will greatly strengthen the market position
and growth prospects of the global logistics Group DPWN in the run-up to
the company’s IPO in November.
Following the completion of the transaction, DPWN will
hold a 51 percent stake in DHL International, the pioneer and market
leader of the global air express industry. DHL has an international
network linking more than 80,000 destinations serving 635,000 cities in
228 countries and employing over 64,000 people. DHL International,
headquartered in Brussels, generated revenues of approximately 4.0 billion
Euro in 1999.
The move will enable the two groups to offer
complementary logistics and air-express services and gives customers
easier access to the full capabilities of both companies.
Dr. Klaus Zumwinkel, Chairman of Deutsche Post World
Net, underlined the importance of the transaction for the Group’s
forthcoming IPO, “DHL founded the global express industry and is
considered to be the gem of the entire industry. The services provided by
DPWN and DHL complement each other and we will be able to provide our
international customers with market leading services in the global express
business in future. With DHL, the growth and earning prospects of Deutsche
Post World Net will be considerably enhanced.”
DHL will continue to operate as an independent company
under its globally recognized brand. The present management structure will
be maintained. The DHL brand is very well established worldwide and will
continue to be expanded. The previously announced plans to float part of
DHL in 2002 are still on course.
Patrick Lupo, Executive Chairman DHL International
said, “The step taken by DPWN is confirmation of our strong growth
prospects. It will provide us with enhanced access to capital and enable
us to further develop our infrastructure.
“There is a growing demand among our customer base
for integrated logistic solutions. By broadening our respective service
portfolios, both groups’ customers will benefit from easier access to an
increased range of complementary services.”
The transaction is expected to close early in 2001,
subject to Board and regulatory approvals.
This transaction, due to its scale and strategic
importance, must be included accordingly in the Deutsche Post IPO
prospectus. Consequently, the planned date for the IPO will be November
20.
Nike Group Site Visit to
Hemaraj
Ms. Cheryl Ford, country manufacturing operations
director of Nike Thailand, led 20 guests from Nike Vietnam, Rama Shoe and
the Pan Group to visit Hemaraj’s Eastern Seaboard Industrial Estate
(Rayong). The group received a warm welcome from Khun Parisada
Tongviseskul, Hemaraj’s marketing manager.
The group visited and took plant tours around Copeland
- Emerson Thailand, TRW Steering & Suspension Co., Ltd., Dana Spicer
(Thailand) Co., Ltd. and Ampacet (Thailand) Co., Ltd. The purpose of the
visit was to observe the manufacturing process and manufacturing
facilities outside of their footwear and apparel industry.
Foreign Business Act of
1999 - Introduction
Courtesy of eThailand.com
On March 3, 2000, the Thai Foreign Business Act of 1999
(“FBA”) took effect. The FBA replaced the Alien Business Law of 1972
(also known as N.E.C. Announcement No. 281).
The FBA governs the conduct of business by foreigners
in Thailand. It prohibits foreigners and foreign owned enterprises from
certain business activities in Thailand, and sets forth under what
conditions a foreigner or foreign enterprise can conduct other business
activities in Thailand.
The structure of the FBA is similar to that of N.E.C.
Announcement No. 281. The FBA includes three lists of business activities.
The first list contains activities that are completely prohibited to
foreigners “for special reasons”. The second list contains activities
that are deemed to affect Thailand’s national security, culture, natural
resources or environment.
Foreigners will be allowed to engage in activities on
List Two only with the permission of the Thai Cabinet. The third list
contains activities that are deemed to be areas in which Thai businesses
are not yet ready to compete with foreigners. These activities will be
permitted to foreigners only with the approval of the Director-General of
the Commercial Registration Department.
A foreigner will be permitted to engage in activities
that do not appear on the lists, subject only to a minimum capital
requirement of 2 million baht.
The business activities included in the lists under the
FBA are different from, and less sweeping, than those included in the
three annexes under the prior law.
Under the FBA, more business activities will be
permitted without the need for a special license.
Another significant difference between the FBA and the
prior law is that the FBA clearly contemplates the Director-General of the
Commercial Registration Department granting Foreign Business Licenses to
foreigners so that they can, subject to conditions, perform activities
contained in List Three.
In practice under N.E.C. Announcement No. 281, Alien
Business Licenses were generally only granted to foreigners to the extent
necessary to allow the foreigner to carry out work under contract with the
Thai government.
Finally, “Representative Offices”, which were
specifically authorized under N.E.C. Announcement No. 281 are not provided
for under the FBA.
The Commercial Registration Department no longer grants
new licenses for Representative Offices, although an office currently
operating can continue to do so until its license expires.
Exactly how permissive the Director-General of the
Commercial Registration Department will be under the FBA remains to be
seen.
As of September 14, 2000, regulations required in order
to implement the FBA had not yet been issued. Time will tell whether this
delay signifies a general reluctance to administer the law’s provisions,
or simply is the result of inevitable delays in the issuance of government
regulations.
A foreigner contemplating establishing a business in
Thailand should note that the Foreign Business Law is not the only Thai
law affecting a foreigner’s right to engage in business in Thailand.
Many other laws establish restrictions on foreign ownership, including,
for example, laws on banking, insurance, telecommunications and employment
agencies. Those laws are not affected by the FBA.
Next time: The scope of the FBA
Ayudhya CMG’s
Australian joint owner, Commonwealth Bank Group, posts strong profit in
fiscal 2000
Ayudhya CMG’s Australia-based joint owner,
Commonwealth Bank Group, has announced a net operating profit after tax of
A$1,713 billion (40.83 billion baht) for the year ended June 30, 2000.
Directors declared a final dividend of 72 cents a share, fully franked.
Commonwealth Bank Group managing director and CEO,
David Murray said the result showed that more people were doing more
business with the Group, despite a further fall in margins. Commonwealth
Bank is undergoing a merger with Colonial, the near-former owner of CMG
Asia, which alongside Ayudhya Group operates Ayudhya CMG.
The result incorporates a minor profit contribution
from Colonial from June 13 to 30, 2000. Consequent upon the merger with
Colonial, the life and funds management business of both groups have been
valued, resulting in a one-off revaluation adjustment of the Group’s
life and funds management businesses of A$987 million, net of
restructuring charges.
Murray said, “This result shows our intention to
become a more diversified financial services group. The merger with
Colonial, proceeding as expected, complements this strategy.”
Reflecting continuing strength in the Australian
economy, total lending assets rose 11% but continuing margin compression
limited net-interest earnings growth to 5%. Income from financial markets
trading, life insurance and funds management grew strongly. Retail
transaction fees remained at 4% of total operating income.
Foreign investment
opportunities
Courtesy of eThailand.com
Since 1997, Thailand has increased its efforts to
attract foreign direct investment, although many sectoral and ownership
limits remain.
Foreigners can own 100 percent of banks, manufacturing
enterprises and large scale retail outlets, but restrictions remain in
agriculture, mining and many services sectors. Restrictions on foreigners
owning land also have been eased.
In 1998 and 1999, as the foreign investment regime
became more liberal, new foreign direct investment reached around US$12
billion, more than the previous five years’ total.
Because of the crisis, many Thai companies are seeking
foreign partners to raise capital and improve their competitiveness
through new technology, management and marketing skills.
As corporate structuring progresses in 2000 and 2001,
opportunities for foreign investors to purchase non-core assets should
increase.
However, in 1998 and 1999, a hostile Senate thwarted
the Government’s attempts to liberalise the alien business law;
consequently, the new law is only marginally less restrictive than the old
one.
In mid 2000, an anticipated new investment incentive
system was expected to reduce incentives to prosperous provinces closer to
Bangkok and redistribute them to poorer provinces, but these reforms are
now in doubt.
Copyright 2000 Pattaya Mail Publishing Co.Ltd.
370/7-8 Pattaya Second Road, Pattaya City, Chonburi 20260, Thailand
Tel.66-38 411 240-1, 413 240-1, Fax:66-38 427 596; e-mail: [email protected]
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