SingTel is reportedly a contender to acquire a $3.1 billion stake in Shin Corp, a major shareholder in Thai operator Advance Info Service (AIS).

Financial Times reports that Singapore’s state investment company Temasek wants to end its interest in Shin Corp, by selling its 41.6 per cent stake in the group.

Talks are believed to have been started between Temasek and SingTel but have been put on hold due to the political unrest in Thailand.

SingTel already holds a 23.3 per cent stake in AIS, which is the largest mobile operator in Thailand. Purchasing the Shin Corp stake would effectively increase its holding in AIS.

SingTel is the largest operator in Singapore and also has stakes in Telkomsel (Indonesia), Globe Telecom (the Philippines), PBTL (Bangladesh) and India’s Bharti Airtel. The group previously said it intends to increase its stakes in existing ‘associate’ businesses.

Temasek has links with SingTel, being its largest shareholder, with a 52 per cent stake.

There was a political backlash following Temasek’s 2007 purchase of the controlling stake in Shin Corp from then Thai prime minister Thaksin Shinawatra, a key player in the country’s current political instability.

The stake Temasek is looking to sell in Shin Corp is held via an investment vehicle called Aspen Holdings. It previously owned other stakes through similar investment vehicles but disposed of these in the past 12 months, according to Financial Times.