The Vayupak Fund 1 is expected to have a new co-management team after a trading report of securities indicates a change in ownership of MFC Asset Management, one of the companies with the right to manage the Vayupak Fund.
The Stock Exchange of Thailand (SET) disclosed information of a big lot transaction on September 24, 2024, which showed two transactions of MFC Asset Management Public Company Limited (SET: MFC) totaling 31,357,850 shares at an average price of THB 25.00 per share for a total transaction value of THB 783,946.25 million.
It has been speculated that the seller could be Country Group Holdings Public Company Limited (SET: CGH) due to the amount of shares reported by the exchange match the amount held by CGH, which is the major shareholder of MFC at 24.96%. The Government Savings Bank is the second shareholder with 24.94% and the Ministry of Finance holds 15.92%.
No official filing has been submitted to the Securities and Exchange Commission (SEC) as of now.
Additionally, MFC Asset Management is one of the management companies of Vayupak Fund 1 together with Krungthai Asset Management (KTAM).
Under the assumption that MFC and KTAM share half of the management right in the Vayupak Fund 1, the new buyer that purchases an entire ownership in MFC from CGH will step up as the major shareholder of MFC with 24.96% stake.
This will automatically give the new shareholder the right to manage the Vayupak Fund 1 that recently offered a new Type A unit, which received an overwhelming feedback by retail and institutional investors as seen by the report of all units being fully subscribed. The fund raised THB 150 billion from this offering, giving the new shareholder of MFC the right to manage THB 75 billion of funds in the Vayupak Fund 1.
Still, the Thai government could take control of MFC when combining the shareholding of the Government Saving Bank and the Ministry of Finance for a total of 40.86%. Thus, it is likely that the Thai government will keep their seats at the BOD meeting regardless of the “new shareholder.”
The Vayupak Fund 1 will concentrate on mid and small-cap stocks, particularly those with high ESG ratings. The new unit has a minimum guarantee mechanism over its 10-year tenor and will distribute dividends based on its actual operating performance.
The Vayupak Fund 1 is expected to be listed in the Thai stock exchange and kick off its first trading day on October 7, 2024.
About Vayupak Fund
The Vayupak Fund is a public fund in Thailand that was established to manage the country’s state-owned assets with the goal of generating returns for the government while supporting the development of the nation’s economy.
The fund operates as a type of mutual fund and invests primarily in shares of state-owned enterprises (SOEs) and other government-related assets. The idea behind the Vayupak Fund is to enhance the efficiency and performance of these assets while providing a steady stream of income and capital gains to the government. The fund is seen as a tool to encourage better corporate governance and profitability among the SOEs included in its portfolio.
