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Published on November 15, 2007

  The Stock Exchange of Thailand is investigating suggestions of insider trading of Wyncoast Industrial Park stock after the Wongsawat family cashed in 172.5 million of its shares, worth Bt175 million, on Tuesday.

Chinnicha Wongsawat, a niece of former prime minister Thaksin Shinawatra and a candidate for the pro-Thaksin People Power Party in Chiang Mai, sold 72.5 million shares as part of a big lot trade on Tuesday at Bt1.02.

Yesterday Wyncoast stock closed down 10.4 per cent at Bt1.12.

SET senior vice president Supakit Jirapraditkul said Wyncoast's market price had crept up steadily before the big lot sale was completed and a halt sign could be placed on the stock. That raised a red flag.

The SET is asking for transaction information from brokerages, which was a normal practice when the SET was checking for suspicious activity, he said.

The Wongsawats on Tuesday sold altogether 172.5 million shares or 35.18 per cent of Wyncoast in six big lot transactions. First, at 12.25pm, 72.5 million shares were sold at Bt1.02 each, about the market price at the time. No abnormal stock price movement was observed during the early trading hours of the afternoon session. But Wyncoast started rising sharply after 3.50pm, to Bt1.03. At 3.57pm, the second big lot of 56.25 million shares went through at the same price of Bt1.02.

Then, the market price rose to Bt1.05.

From 4.01-4.04pm, the third, fourth, fifth and sixth big lots were transacted with 43.74 million shares in combination sold at the same price of Bt1.02. Then, the stock jumped to Bt1.25 in open trading, up 34.41 per cent from the previous close. With less than 20 minutes before the market shut, the SET put a halt sign on Wyncoast stock.

The SET suspended Wyncoast shares on Wednesday but later allowed the stock to resume trading after Wyncoast's management told the SET that the shareholding of each purchasing party was not large enough to trigger a mandatory tender offer.

Among the buyers, Samprasit Group and Sorayudh Petchtrakul belong to the same party, but they have no connection to Jak Chamikorn. Samprasit specialises in real estate, while Jak is interested in the company's railway transportation business because he has his fingers in the logistics industry, Wyncoast said.

Wyncoast reported on Wednesday that the Wongsawats sold 172.5 million shares or 35.18 per cent on Tuesday.

It said Chinnicha sold 16.79 per cent, divided into 14.79 per cent or 72.5 million shares to Jak, who is Thai, and 2 per cent or 9.83 million shares to Sorayudh, who is also Thai. Chinnicha has no shares of Wyncoast left.

Chayapa Wongsawat on Tuesday sold 17.27 per cent divided into 11.47 per cent or 56.25 million shares to Sam Prasit LP, a Thai entity; 2.04 per cent or 10 million shares to SSEC Asset Management Securities Co Ltd; and 3.76 per cent or 18.42 million shares to Sorayudh. Chayapa still retains 14.6 million shares or 2.98 per cent.

Yodsanan Wongsawat sold 1.12 per cent or 5.5 million shares to Karnchana Pong-sevalak. Yodsanan's remaining shareholding is 89.16 million shares or 18.18 per cent.

Chinnicha, Chayapa and Pathrlap Davivongsa resigned from Wyncoast's board of directors on Tuesday.

Chinnicha said yesterday the sale of her shares worth Bt176 million in Wyncoast was simply a business decision unrelated to her desire to run in the upcoming election.

Investors sell whenever the timing is right to maximise returns on their investment, she said, adding that now was a good time as the election had raised hopes for the economy after a long period of sluggishness.

"I insist that this transaction has nothing to do with politics. It's sad that whenever anything happens to me, it's always linked to politics. We should separate business and politics," she said.

The transaction not only leads to a change in the shareholding structure, but also took place when the anti-graft agency is getting tough on all politicians who could resort to illegal ways of raising money for the upcoming campaign. Under the election law, each candidate is limited to spending of Bt1.5 million.

Siriporn  Chanjindamanee

 The Nation