The Finance Ministry plans to put the first 18 privately owned companies in which it owns less than a 50% stake on sale later this month.
Those interested in buying these shares can submit their offers from Dec 26, 2018 to Feb 7, 2019. A second round will be open between Feb 8 and March 22 if less than two groups bid in the first session, said Prapas Kong-Ied, director-general of the State Enterprise Policy Office (Sepo).
If there is only one bidder in both rounds, Sepo will consider whether its offering price is justified, and another round will be opened if the price was considered inappropriate.
The 18 companies to be put under the hammer is smaller than Sepo's previous plan to divest from 24 firms.
The cabinet on Sept 27 last year resolved to permit the Finance Ministry to sell shares in non-listed companies in which the ministry owns less than 50%, as well as assets that were derived from foreclosures. The auctions are to comply with the five-year divestment plan through 2021.
The ministry's policy is to hold stakes only in companies that operate in strategic industries, or in sectors that are crucial to the country's development, or if they are related to the public, such as utilities or finance.
The 18 firms include Phitsanulok Hospital (3 million shares); pulp and paper manufacturer Royal Craft Ltd (125,000 shares); limestone miner Chonsin Co (105,000 shares); Lamphlai Parawood Co (40,000 shares); Thaksin Laundry Co (25,000 shares); four companies under the Davis Group, seized from massage parlour king-turned-TV host Chuvit Kamolvisit (46,000 shares); Oxygen Phaktai Co (2,680 shares); and Siam City Insurance Plc (150 shares).
"The sale of shares in the 18 firms is the ministry's first divestment, and other companies will be sold in phases to comply with Finance Minister Apisak Tantivorawong's policy to gradually sell them to get good prices. Potential buyers are expected to be these companies' shareholders or cousins of those whose assets are foreclosed," said Mr Prapas.
Shares of 109 listed and unlisted companies are held by the Finance Ministry, with a combined market value of 1.15 trillion baht and book value of 800 billion, according to ministry data in 2017.
Of the total, 20 are listed companies -- six are state enterprises with book value of almost 500 billion baht, and 14 are privately owned firms with book value of 26 billion.
The remaining 89 are non-listed firms, with 17 state enterprises with book value of 287 billion baht, while 72 are privately owned companies with book value of 5 billion.