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T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Tuesday, May 26, 1998, Vol. 1, No. 66

                    Headlines


C H I N A   &   H O N G   K O N G

BEIJING DEVELOPMENT (HK): 1997 Results Announcement
CP POKPHAND: Announces Net Loss of US$109.6 Million
MANSION HOLDINGS: Announces Final Restructuring Plan


I N D O N E S I A

BARITO PACIFIC: S&P Withdraws Credit Rating


J A P A N  

ALL NIPPON AIRWAYS: To Cut Back Overseas Hotal Business
DAIHATSU MOTOR: Announces 53% Lower Pretax Profit
DAIWA BANK: Posts Huge Losses
NIPPON CREDIT BANK: Seeks Roll-over on Loans
SANYO ELECTRIC: Net Profit Sinks 30%
SUMITOMO BANK: Posts Huge Losses


K O R E A

CORYO SECURITIES: Ministry Likely to Revoke Licence
DONGSUH SECURITIES: Ministry Likely to Revoke Licence
HYUNDAI MOTORS: Workers to Strike Wednesday
KIA MOTORS: Decision Likely by August
KIA MOTORS: Ford Seeks a 51% Stake in Kia
LG ELECTRONICS: Fully Absorbs Troubled Zenith Electronics


M A L A Y S I A

BERJAYA SINGER: Posts Lower Profits
OMEGA SECURITIES: Rashid Hussain Denies Takeover
RENONG BHD: Posts Foreign Exchange Losses
SIME BANK: Subsidiary Licences Total $US44 Million


T H A I L A N D

BANK OF ASIA: Purchased by ABN Amro Holding NV
CHAROEN POKPHAND: Asia Pacific Breweries Takes Stake
DHANA SIAM FINANCE: Rumours of Merger
KR PRECISION: Records Net Loss for First Quarter


=================================
C H I N A   &   H O N G   K O N G
=================================

BEIJING DEVELOPMENT (HK): 1997 Results Announcement
---------------------------------------------------
For the period January 1, 1997 to December 31, 1997,
Beijing Development (HK) Limited reports a net loss of
HK$13,967,000 on turnover of HK$113,580,000. This compares
to a net loss of HK$26,292,000 on turnover of
HK$102,077,000 for the corresponding 1996 period.
(SEHK 21-May-1998)


CP POKPHAND: Announces Net Loss of US$109.6 Million
---------------------------------------------------
CP Pokphand, the Hong Kong listed arm of the troubled Thai-
based empire, yesterday revealed the damage wrought by the
Asian crisis - particularly the turmoil in Indonesia -
announcing an attributable net loss of US$109.6 million for
the year to December.

The company, which has net current liabilities of US$542.05
million and last month admitted it faced cash-flow problems
and was in talks with lenders, said the main factor behind
the loss was the decision to write down its Indonesian
assets to zero, resulting in a US$20.7 million provision.
The Indonesian provision was part of a net exceptional loss
of US$30.4 million, which also included US$10 million of
provisions for falls in investment values. A further US$76
million loss flowed from associates.

Next Friday CP Pokphand will hold meetings to be aimed at
persuading holders of certain of its floating-rate notes to
revoke redemption notices amounting to US$92.8 million in
repayments.
(South China Morning Post 22-May-1998)


MANSION HOLDINGS: Announces Final Restructuring Plan
----------------------------------------------------
Debt-ridden Mansion Holdings yesterday announced a final
restructuring plan under which locally listed Symphony
Holdings and related parties will take control of the group
via an injection of $168.58 million. A final agreement on
the plan was made on Wednesday by Mansion, Symphony and the
group of creditor banks to which Mansion owes $537.26
million.

Under the plan, footwear manufacturer Symphony Holdings,
with chairman Chan Ting-chuen and substantial shareholder
Search Pacific, will inject $168.58 million in cash.
Mansion's debt would be discharged on completion of the
plan which will see it issue 107.45 million new shares,
414.07 million warrants, plus $26.86 million in two-year
unsecured convertible notes to its banks. The plan will
solve Mansion's liquidity problem, and will transform its
net deficit position to a net asset position.

On completion, Symphony, Mr Chan and Search Pacific will
hold up to 70 per cent of Mansion, and the bank group will
hold 23.5 per cent.

Mansion's listing status would be maintained and the new
shareholders would take steps to ensure the public holds 25
per cent.

Symphony would maintain Mansion's core business of
installing fire-fighting systems, and would expand its
business into supplying and selling fire prevention
products, fire system maintenance services and fire
insurance.

The restructuring plan is conditional on Symphony and
associates not having to make a general offer, the plan
being approved by Mansion's independent investors and
trading not being suspended for more than three business
days.

Mansion will reduce its capital by cancelling 80 per cent
of existing shares. After the capital reduction, a bonus
issue of warrants will be made of one warrant for one
ordinary share, and an eight for one rights issue.

Mr Chan will subscribe for $880 million new Mansion shares
at 10 cents each. Symphony will sell a property to Mansion
while Mansion will pay by issuing $680 million of new
shares at 10 cents each.

Search Asia will underwrite the rights issue of Mansion of
not less than 805.81 million right shares which will raise
$80.58 million.
(South China Morning Post 22-May-1998)


=================
I N D O N E S I A
=================

BARITO PACIFIC: S&P Withdraws Credit Rating
-------------------------------------------
Standard & Poor's today withdrew its 'CCC-' corporate
credit rating on Indonesian hardwood plywood manufacturer
Barito Pacific Timber (PT). Standard & Poor's does not rate
any public debt issued by Barito, and the company has no
intention of using the rating in the foreseeable future.
(Asia Pulse 22-May-1998)


=========
J A P A N  
=========

ALL NIPPON AIRWAYS: To Cut Back Overseas Hotal Business
-------------------------------------------------------
Japan's All Nippon Airways Co. Ltd. (ANA) plans to sell two
hotels in the United States in a bid to curtail the hotel
business overseas, a news report said Friday. The country's
largest airline company plans to sell hotels in Washington
and San Francisco which it bought in the late 1980s, the
Mainichi Shimbun said Friday.

ANA also plans to lower its stake in hotels it jointly runs
in Sydney and Vienna, the daily said, adding that revenues
from the airline's hotel division has dropped, dragging
down the company's finances.

In March, ANA announced its restructuring plan through the
year to March 2002, with plans to slash planned investment
in the next three years by 20 percent and cutting
directors' salaries. By March 2002, 1,000 jobs will be cut
as part of the organisational restructuring.

ANA has said it expected a group net loss of seven billion
yen (52 million dollars) in the year to March, a reversal
from an earlier forecast profit of 3.8 billion yen.

Earlier this month, US ratings agency Moody's Investors
Service put its senior debt rating for ANA under review for
possible downgrade. The move reflected Moody's "growing
concern over ANA's increasingly difficult operating
environment and expectations of further deterioration in
the company's highly leveraged financial position," the
agency said.
(Agence France-Presse 22-May-1998)


DAIHATSU MOTOR: Announces 53% Lower Pretax Profit
-------------------------------------------------
Japanese minicar-maker Daihatsu Motor yesterday announced a
53.2 per cent drop in group pretax profit for the year to
March, citing a slump in the domestic car market. Daihatsu,
an affiliate of Toyota Motor Corp, said its pretax profit
fell to 14.5 billion yen (about HK$826.31 million). Group
revenue was down 2.5 per cent to 887 billion yen, with net
profit plunging 57.2 per cent to 8.5 billion yen.
(South China Morning Post 22-May-1998)


DAIWA BANK: Posts Huge Losses
-----------------------------
Sumitomo Bank Ltd. and Daiwa Bank Ltd., two of Japan's
biggest banks, said Thursday they posted massive losses in
the last business year to mop up a large part of their
problem loan mess. They said that their decision to take
such bitter medicine would help them return to reasonable
profits for the current business year, which began April
1.

Daiwa Bank said it expected a parent current profit of 22
billion yen ($163 million) in 1998/99 against a loss of
151.22 billion yen ($1.1 million) in 1997/98. Daiwa's loan
loss charges for 1998/99 were estimated at 40 billion yen
($296.3 million) after taking a 389.98 billion-yen ($2.9
billion) charge for loan losses in 1997/98, he said. The
bank estimated a parent operating profit of 65 billion yen
($481.5 million) in 1998/99, down from 96.46 billion yen
($714.5 million) in 1997/98, partly because the bank will
continue cutting back on its overseas assets.

Daiwa Bank said that, while it had problem loans worth
958.1 billion yen ($7.1 billion) at the end of March, 71.5
percent of that amount was covered by loan loss reserves.
The bank also had $2.4 billion ($17.8 million) of credits
outstanding to Asian countries as of the end of March.
(Reuters 21-May-1998)


NIPPON CREDIT BANK: Seeks Roll-over on Loans
--------------------------------------------
The Nippon Credit Bank (NCB), a financial institution with
10 trillion yen in assets, has asked 22 insurance companies
to roll-over or stretch the payment schedule for 218
billion yen worth of subordinated loans it uses as capital.
NCB has asked for the repayment date on 60 per cent of
these loans to be extended until 2005, a bank spokesperson
said.

The bank will pay back the other 40 per cent of the loans
on the condition the insurers then deposit the money in the
form of three-year certificates of deposit with NCB.

Subordinated loans lose value as capital as they approach
their maturity date so the purpose of the roll-over was to
stabilise the banks' capital base.
(South China Morning Post 22-May-1998)


SANYO ELECTRIC: Net Profit Sinks 30%
------------------------------------
Sanyo Electric Co. announced Thursday that its consolidated
net profit for the fiscal year ended March 31 dropped 30%
to 12.3 billion yen. The Osaka firm was required to pay 2.8
billion yen in additional taxes resulting from the adoption
of U.S. accounting standards.

Excluding the one-time tax burden, Sanyo Electric's  
consolidated net profit totaled 15.1 billion yen, a 14%  
decline from fiscal 1996. Price drops of its products both
at home and abroad were to blame.

The firm's consolidated net sales grew 4%. Consumer  
electronics suffered a 5% decline while nonconsumer  
electronics, including batteries and custom integrated  
circuits, rose by 11%. Domestic sales slumped, but overseas
business fared well, lifting the ratio of overseas sales to
total group sales by 3 percentage points to 47%.
Consolidated pretax profit slid 8%.
(Asia Pulse 22-May-1998)


SUMITOMO BANK: Posts Huge Losses
--------------------------------
Sumitomo Bank Ltd. and Daiwa Bank Ltd., two of Japan's
biggest banks, said Thursday they posted massive losses in
the last business year to mop up a large part of their
problem loan mess. They said that their decision to take
such bitter medicine would help them return to reasonable
profits for the current business year, which began April
1.

In particular, Sumitomo Bank was confident that it would be
able to manage its bad loan mess after it took a charge of
1.04 trillion yen ($7.7 billion) to cover existing and
potential loan losses. Sumitomo Bank said it expected a
parent current profit of 170 billion yen ($1.3 billion) in
1998/99, after posting a parent current loss of 617.4
billion yen ($4.6 billion) in 1997/98.

Current profit is pretax and includes gains and losses from
non-operating activities. The bank said it plans to post
loan loss charges of 80 billion yen (592.6 million) to 100
billion yen ($740 million) in 1998/99. At the end of March,
Sumitomo's outstanding problem loans calculated on
U.S. accounting rules amounted to 1.47 trillion yen ($10.9
billion), or 4.09 percent of its total loans outstanding.  
The bank said it has already covered 85.6 percent of its
expected losses on problem loans.
(Reuters 21-May-1998)


=========
K O R E A
=========

CORYO SECURITIES: Ministry Likely to Revoke Licence
---------------------------------------------------
The Finance-Economy Ministry will likely revoke the
business licenses of two bankrupt securities houses --
Dongsuh and Coryo-- following the Financial Supervisory
Commission's May 1 request to do so. Coryo Securities has
failed to gain a promise from creditors that its loans will
be converted to capital investments. Chances are high that
the two financially-troubled firms will enter procedures
for liquidation after the ministry holds hearings on the
two Friday.
(Asia Pulse 22-May-1998)


DONGSUH SECURITIES: Ministry Likely to Revoke Licence
-----------------------------------------------------
The Finance-Economy Ministry will likely revoke the
business licenses of two bankrupt securities houses --
Dongsuh and Coryo-- following the Financial Supervisory
Commission's May 1 request to do so.

According to securities industry sources Friday, the U.S.
investment trust firm Horizon Holdings, which reportedly
agreed to take over Dongsuh Securities, missed the
Wednesday due date for payment of US$100 million in
acquisition money to Dongsuh. Horizon Tuesday informed the
Korean securities firm that it would be unable to honour
its promise for remittance to Dongsuh. Dongsuh had been
pushing to receive the funds from the U.S. firm earlier, in
response to the financial watchdog's move to have the
securities firm liquidated by the ministry. The
notification by Horizon crushed Dongsuh's efforts to get
management back on the right track.

Chances are high that the two financially-troubled firms
will enter procedures for liquidation after the ministry
holds hearings on the two Friday.
(Asia Pulse 22-May-1998)


HYUNDAI MOTORS: Workers to Strike Wednesday
-------------------------------------------
After month-long talks with its labor union failed, Hyundai
Motor Co. said Wednesday it will cut its 30,000- member
workforce by 8,200, or 27 percent. The labor union
immediately said it would strike South Korea's biggest
car maker on Wednesday. About 40 union members began a sit-
down protest in the lobby of Hyundai's headquarters in
Ulsan, an industrial city 175 miles southeast of Seoul.
(Detroit News 21-May-1998)


KIA MOTORS: Decision Likely by August
-------------------------------------
The fate of Kia Motors Corp. is likely to be decided by
August. Its main creditor bank, the Korea Development Bank
(KDB), said Friday that Kia must submit its survival plan
by the end of August. Its debt analysis period is over May
20. Related parties will convene at the Seoul district
court in August to analyze the motor firm's total debts and
other financial obligations.

Final disposal plans for the troubled company will emerge  
in July at the earliest, or by August at the latest. There
have been many reports that it will be sold to a third
party.

Yoo Jong-yol, court-appointed manager of Kia, reportedly  
asked for support during meetings with KDB president Lee  
Kun-yong and heads of other creditor banks at the Bankers
Club in Seoul Thursday.

Kia's survival plan may include concrete plans for selling  
or merger and acquisition measures and its debt repayment  
schedule. The court will decide on the plan, with the
consent of the creditor banks. A KDB official said Kia's
survival route should be concluded when its debts and
obligations are firmed up around June 10. Hyundai, Daewoo,
Samsung Motors, and Ford, the majority shareholder of Kia,
have all expressed interest in bidding for Kia.
(Asia Pulse 22-May-1998)


KIA MOTORS: Ford Seeks a 51% Stake in Kia
-----------------------------------------
Ford Motor Co. is seeking a 51-percent stake in Kia Motors
Corp. and plans to apply an American-style management
system to the ailing company, one that separates management
from ownership, Kia officials said yesterday. Ford Vice
Chairman Wayne Booker informed Kia of the U.S. motor
company's plan to set up a consortium enabling it to
purchase 51 percent of Kia's total equity, they said.  If
Ford, Kia's largest foreign shareholder, gains 51 percent
of Kia's total equity, the Korean firm will virtually
become a subsidiary of Ford.

But Ford plans to entrust the troubled motor company's
management to a Korean professional manager, while applying
an American-style system of management, Kia officials
quoted Booker as saying.

In setting up a consortium to purchase Kia's equity, Ford
will request the participation of Kia's creditor banks,
including the state-run Korea Development Bank (KDB).

Ford's decision shows its desire to share the huge
financial burden that will come with acquiring 51-percent
equity with Korean financial institutions. Kia is saddled
with an estimated 10 trillion won in debt ($7.1 billion),
including cross payment guarantees.

Further, the move is in line with its business strategy to
increase its market share in Asia through Kia and Ford's
Japanese affiliate, Mazda, while coping with ongoing
mergers and acquisitions among the world's auto makers,
including the recent merger between Mercedes-Benz and
Chrysler, Kia officials said.

In the meantime, any decision regarding the fate of Kia
Motors, now under court receivership, is expected to be
made by the end of August, after the company submits
details on its plan to settle debts. Kia's main creditor
bank, KDB, said yesterday that Kia must submit its survival
plan to a court by the end of August. Kia's related parties
will convene at the Seoul District Court in August to
determine the ailing motor company's total debts and other
financial obligations, a KDB spokesman said.

In a related development, Yoo Chong-yul, court-appointed
manager of Kia, asked for active support for the motor
company's settlement during meetings with KDB president Lee
Kun-yong and heads of other creditor banks at the Bankers
Club in Seoul Thursday.

Kia's survival plan may include concrete details like
sales, mergers and acquisitions and scheduling of debt
repayment. The court will decide on a plan with the consent
of Kia's creditor banks.
(Korea Herald 22-May-1998)


LG ELECTRONICS: Fully Absorbs Troubled Zenith Electronics
---------------------------------------------------------
LG Electronics Inc. has decided to increase its ownership
share of Zenith Electronics Corp. to 100 percent in order
to restructure the nearly bankrupt American TV maker. LG
said yesterday it will inject $60 million into Zenith to
help finance a restructuring plan disclosed by the ailing
subsidiary.

"We will actively support the restructuring plan," said a
company official, adding that LG is involved in discussions
with third-party lenders about additional financing. LG's
move came after the Chicago-based maker of TV sets and
other electronics announced Thursday the approval of the
plan by its board of directors. The plan was also approved
by LG.

Under the financial and operational restructuring plan, LG
will convert $200 million of Zenith debt to common stock of
the company, representing 100 percent of the equity in the
restructured Zenith. Another $210 million of claims held by
LG will be exchanged for Zenith manufacturing assets in
Mexico and secured notes due in 2008. Zenith plans to file
the plan with the U.S. Securities and Exchange Commission
before being presented to a bankruptcy court for approval
soon. Once approved, LG said it will seek fundamental
changes in the way Zenith does business, while maintaining
Jeffrey Gannon as its president and CEO.

Both LG and Zenith vowed to rebuild the U.S. company into a
brand and technology leader. But some analysts questioned
LG's ability to complete the proposed reorganization of
Zenith without delay.

LG, which acquired 57.7 percent of Zenith in November 1995,
has poured money into its struggling U.S. subsidiary, which
has barely recorded benefits in a decade. Affected by the
financial crisis that hit the nation late last year, LG
reported 1997 net losses of 289.7 billion won ($200
million), and announced it would restructure itself. LG,
however, was confident that it will position Zenith for
growth and consistent profitability by focusing on its
patented digital television technologies.
(Korea Herald 22-May-1998)

LG Electronics has a 19.1 percent stake in Zenith. Another
LG affiliate, LG Semicon has a 38.6 percent share of the
U.S. firm, bringing the total share of Zenith owned by LG
Group affiliates to 57.7 percent. The LG Electronics loan
comes at a time of hardship for the LG Group, which, like
most big South Korean business groups, is in the throes of  
restructuring as the country struggles to emerge from a
severe economic crisis.

Analysts said LG Electronics may have been trying to
protect its own interests. "LG stands to lose more if it
doesn't provide the loans," said Kang Rock-hee, an analyst
at Daishin Securities. "The LG Group has already invested
close to one trillion won ($721 million) in Zenith and
that's all gone if they choose to bail out now," he said.
(Reuters 22-May-1998)


===============
M A L A Y S I A
===============

BERJAYA SINGER: Posts Lower Profits
-----------------------------------
Berjaya Singer has posted a group pre-tax profit of 32.67
million ringgit (S$14.2 million) for the year ended April
30, down 71 per cent from RM113.02 million in the previous
financial year. Turnover rose 4 per cent to RM1.42 billion
from RM1.37 billion. Earnings per share fell to seven sen
from 27 sen. Berjaya Singer said that despite the improved
performance of its Unza group of companies and Cosway (M)
Sdn Bhd, the group's results were dampened by lower
contribution from Singer (Malaysia) Sdn Bhd and losses
suffered by UK subsidiary Dunham-Bush (Malaysia) Bhd. It
added that the losses amounting to RM12.6 million were
mainly due to an exceptional one-time closing down cost of
the cooling division in the UK.
(Singapore BusinessTimes 22-May-1998)


OMEGA SECURITIES: Rashid Hussain Denies Takeover
------------------------------------------------
Rashid Hussain Bhd Friday clarified that it is not planning
to take over Omega Securities Sdn Bhd, but said the latter
had defaulted in payments to it for the sale of shares to
the tune of RM150 million (US$1=RM2.77). In a statement
here Friday, Rashid Hussain said it was only considering
proposals by Omega Holdings Bhd and Omega Securities to
solve payment defaults of RM150 million of Omega  
Securities.

The proposals were for non-payment arising from contracts  
for the sale of securities by its subsidiary, Rashid
Hussain Securities Sdn Bhd to Omega Securities. The sale of
securities was done on behalf of Rashid Hussain's clients
with a total net exposure of RM150 million. Omega
Securities has defaulted on these payments to Rashid  
Hussain Securities, it said. Since then, Rashid Hussain has
received proposals from Omega Holdings and Omega Securities
as part of a larger proposal involving the restructuring of
the Omega Holdings Group with a view to enable its two
securities subsidiaries, Omega Securities and WK Securities
Sdn Bhd, to return to normal business operations.
(Asia Pulse 22-May-1998)


RENONG BHD: Posts Foreign Exchange Losses
-----------------------------------------
Renong Bhd, a diversified group dealing primarily in
construction works for infrastructure projects, has been
affected by foreign exchange losses arising from the
depreciation of the ringgit and the economic slowdown. In
its interim results for the nine months ended March 31,  
1998, Renong Bhd registered a pre-tax loss of RM275 million  
($US72.37 million) from a pre-tax profit of RM405.2 million  
($US106.6 million) in the previous corresponding period.
The group's foreign exchange losses totalled RM257.297  
(corrects from RM258 million), it said in a statement here  
Thursday.

However, the group's turnover increased by 34 percent to  
RM607 million from RM603 million, previously while at
company level, turnover declined slightly by two percent to
RM102.7 million from RM141.8 million. At company level,
Renong posted a pre-tax loss of RM203.9 million from a pre-
tax profit of RM51.3 million, previously. Renong posted a
loss per share of 14.1 sen from 12.0 sen. In the period
under review, Renong issued 43.9 million ordinary shares
due to the conversion of RM179.8 million nominal value of
five year four percent Irredeemable Convertible Unsecured
Loan Stocks (ICULS).
(Asia Pulse 22-May-1998)


SIME BANK: Subsidiary Licences Total $US44 Million
--------------------------------------------------
The total premium on the licences of the three Sime Bank
Bhd subsidiaries that are currently up for tender have been
estimated at RM170 million ($US44.74 million). For Sime
Securities Bhd, which posted an after-tax loss of RM674.9
million ($US177.6 millilon) for the six months to Dec 31,
1997, the buyer may end up paying only the premium on its  
stockbroking licence.

The Star daily quoted its sources as saying today that the  
buyer of SimeSecurities would have to take over its
premises and staff. However, the assets and liabilities of
the firm would not be taken into account and the government
will manage its assets and liabilities.

For six months ended Dec 31, 199, SimeSecurities had  
recorded net interest income of RM6.1 million ($US1.6
million) but incurred loan loss and provisions of RM120.5
million ($US31.71 million). Additional loan and financing
loss and provision (as per the new bank Negara three-month
classification for non-performing loans) stood at RM706.6
million ($US185.95 million). Losses carried forward stood
at RM501.6 million ($US132 millioon).

In the case of Sime Merchant Bankers Bhd, the advertisement  
state that 51 percent of the firm was up for sale and that  
only domestic commercial banks with shareholders' funds  
exceeding RM1 billion were eligible to apply. Besides
paying this amount, the buyer would have to be able to work
with Sime Merchant's existing minority shareholders - the
Fuji Bank, the Australia New Zealand Banking Group and Tun  
Omar Ong Yoke Lin's family. For the six month ended Dec 31,
1997, Sime Merchant registered a group net interest income
of RM9.96 million.

In the case of UMBC Insurans, 77.2 percent of the firm is  
for sale at NTA plus a premium of RM60 million for its  
licence. For the six months ended Dec 31, 1997, UMBC
Insurans made an after tax profit of RM57.1 million. It had
retained profits carried forward of RM44 million and
shareholder's funds of RM76 million.

Simeban Harta will be sold after the merger of Sime Bank  
with RHB Bank and the vacation of the United Malayan
Banking Corp (UMBC) building which currently serves as the
Sime Bank headquarters. The sources said the head office
and some branches of Sime Bank (formerly known as UMBC)
would be up for sale, possibly by year-end. The price tag
is estimated at RM200 million.

As for Sime International, the Government will decide if it  
will manage the bank or get some other party to do so. The  
sources said many banks already had offshore units and
hence, Sime International was not sought after.
(Asia Pulse 22-May-1998)


===============
T H A I L A N D
===============

BANK OF ASIA: Purchased by ABN Amro Holding NV
----------------------------------------------
ABN Amro Holding NV confirmed its purchase of 75 per cent
of Thailand's Bank of Asia for at least 7.5 billion baht
(S$329 million), wrapping up the audit begun when the
takeover plan was announced two months ago.

It is the third foreign takeover of a Thai bank this year.
All Thai financial companies need fresh capital because of
billions of baht of bad loans, a 40 per cent decline in the
currency in the past year and the country's first recession
in about 30 years. The plan still needs a rubber stamp from
Thai regulators and Bank of Asia shareholders. The bank is
the 11th biggest among Thailand's 16 commercial banks.

Under the agreement, the largest Dutch bank will make a
first payment of 7.5 billion baht and set the final price
in two years, based on the bank's 1999 year-end adjusted
net asset value. Bank of Asia will pay ABN 12 per cent
annual interest on the initial sum until the final price is
determined, according to Moody's Investors Service.

ABN plans to buy all Bank of Asia's shares in 2000. For the
Dutch bank, it is the latest in a series of acquisitions as
it grows step by step internationally.

ABN Amro is gaining 75 per cent control of Bank of Asia by
buying 1.42 billion new shares. That leaves 15 per cent of
the shares with the Euarchukiati and Phatraprasit families,
1.5 per cent in foreign ownership and 8.5 per cent publicly
traded. Bank of Asia's total assets of 157 billion baht as
of Dec 31 are just below 1 per cent of ABN Amro's total
assets. The Thai bank posted a 1997 loss of 423.5 million
baht after a profit of 1.8 billion baht in 1996.
(The Straits Times 22-May-1998)


CHAROEN POKPHAND: Asia Pacific Breweries Takes Stake
----------------------------------------------------
Asia Pacific Breweries Ltd is paying close to US$30       
million (S$49.1 million) for a stake in the Shanghai       
brewery and distribution business it currently manages for
parent Asia Pacific Investments (API). APB is acquiring a
50 per cent interest in the Sino Brew group from Thailand's
Charoen Pokphand Group for US$29.7 million. The other 50
per cent equity is currently held by API. Through the Sino
Brew group -- comprising Sino Brew Investments Company Ltd,
Hongkong and Sino Brew Investments Pte Ltd, Singapore --
APB and API will hold a 70 per cent stake in Shanghai
manufacturing and distribution company Shanghai Mila Brew
Company Ltd (SMBC).

The acquisition sum of US$29.7 million represents shares in
the Sino Brew Group valued at US$15.9 million and the
assignment to APB of a shareholder's loan of US$13.8
million that had been extended to the Sino Brew Group by
the Charoen Pokphand group. The net tangible assets
acquired have a book value of almost S$26 million.
(Singapore BusinessTimes 22-May-1998)


DHANA SIAM FINANCE: Rumours of Merger
-------------------------------------
Unfounded rumours regarding Dhana Siam Finance and
Securities swirled in the market yesterday, including a
report that major shareholders were balking at buying new
shares and that the firm could merge with National Finance
and Securities. Siripong Sombutsiri, executive vice-
president of Dhana Siam, denied all rumours as groundless.
He said company executives were investigating share
movements over the past several days to monitor whether
certain groups were manipulating prices.

Earlier this week, Dhana Siam executives held a conference
to rebut reports that the firm had been hit with liquidity
problems.

Dhana Siam also announced it was delaying a capital
increase ahead of plans to become a "super-finance" firm,
citing poor market conditions. The company maintains that
its capital adequacy, at 14%, was well above central bank
requirements, and that it had never been forced to borrow
from the Financial Institutions Development Fund. Still,
just over 80 million shares, about 10% of the total
outstanding float, has changed hands in recent days.

Dealers yesterday said rumours about a possible merger
between Dhana Siam and National Finance and Securities
dominated market talk in afternoon trade yesterday. Another
rumour discussed between brokers was that the Crown
Property Bureau, which holds about 6.5% of Dhana Siam, was
ready to sell its shares.
(Bangkok Post 22-May-1998)


KR PRECISION: Records Net Loss for First Quarter
------------------------------------------------
Electronics manufacturer KR Precision Plc recorded a net
loss of 128 million baht in the first quarter of this year,
compared with a net profit of 96 million baht in the same
period of last year. First-quarter sales plunged from 326
million baht to 90 million for the comparable periods.

Sales last year totalled 927 million baht, and the company
had expected to reach 1.4 billion baht this year.
KR Precision said in a statement that overstocking was
adversely affecting the electronics industry and the
situation was the worst in 15 years.

To ease the problem of access to short-term cash, the
company would issue two million new shares at the market
price through private placement, pending approval of
shareholders on June 16. The sale was expected to raise
about 200 million baht. The company said it was also
negotiating with its creditors for the restructuring of
debt.
(Bangkok Post 22-May-1998)


S U B S C R I P T I O N   I N F O R M A T I O N

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