Business as usual, insists Wyncoast
A Wyncoast Industrial Park executive denies the freezing of a bank account of one of the company's major shareholders will hinder operations.
The Assets Examination Committee on Monday froze a Bt100-million bank account of Chinnicha Wongsawat. It said the account held some of the proceeds of the controversial Shin Corp sale. Chinnicha is the daughter of Yaowapa Shinawatra, the sister of ousted prime minister Thaksin.The executive, who asked not to be named, said Chinnicha directly holds 16.79 per cent in the company. She is a board member. Chinnicha and two other members of the Wongsawat family together hold 56.35 per cent of Wyncoast, according to the Stock Exchange of Thailand. The company's stock closed yesterday at Bt1, down two satang on trade of 852,200 shares. The source said the freezing of a director's bank account would not affect day-to-day business. Wyncoast is an industrial-estate property development and construction company. He said the frozen account was a personal one and the company had ample cash flow. He accepted some customers wondered if there would be any effect on the company. It has clarified it will not, he said. The company has several long-term contracts, including ones entered into after the 2006 coup. One is with the State Railway of Thailand. "There might be some problem with image but everything is clear now," the source said. "Chinnicha is still a major shareholder and a director of the company. The asset freeze is a personal matter and nothing to do with the company. Everything is the same. I believe the Wongsawat family does not intend to reduce its shareholding in the company or sell their shares." He said Wyncoast would continue to trade at a loss until next year, as reported to the stock exchange. The company reported a net loss of Bt37.58 million in the first quarter. It recorded a net loss of Bt2.38 million in the same period last year.
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