Wichai plans to pull out of RPCG

Corporate August 06, 2014 01:00

By The Nation

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Wichai Thongtang, a major shareholder of Cable Thai Holding and Prasit Patana, which owns Phayathai Hospital, has decided to pull out gradually from energy company RPCG after a group of shareholders opposed the subscription to a second round of capitalisa

Wichai might also jettison his stake in Tong Hua Communications, which has switched its focus to media from the alternative-energy business, which was its plan when he entered the company. As of April, Wichai held 9.8 per cent of Tong Hua.
He said he made the decision to divest RPCG after having a disagreement with the group of chairman Satja Janetumnugul and his family, who hold shares in the energy firm. 
Wichai has sold 21.7 per cent of the company since August 29 and has 7 per cent left. 
There was a rumour a few days ago that he would sell his shares in RPCG, so he had to inform the Stock Exchange of Thailand last Wednesday.
He has already informed the Securities and Exchange Commission about his share sales.
Wichai said he bought RPCG shares late last year with the aim of helping the company become profitable. It lost Bt139 million last year. 
As part of the turnaround plan, the company launched a rights offering of one new share for every existing share to raise funds to buy 30 per cent of Thai Public Port, which is engaged in the Bt900-million deep-sea port and oil-tank-farm business. 
An RPCG extraordinary shareholders meeting last December 19 approved the company’s purchase of 30 per cent of TPP at the date of transaction, or 31.5 million out of 105 million registered shares after TPP’s capital increase, for Bt900.11 million. Wichai said that, however, at the company’s informal shareholders meeting on August 28, Satja opposed this recap plan.
Wichai said he had to sell the shares in the market as on the day he informed Satja that he would pull out, Satja did not show any sign that he would buy such shares from Wichai. 
Wichai said that as a result, the deal to buy additional shares of Thai Public Port by RPCG has to be cancelled. But he might step in to buy such shares or find interested parties to do so, since he has made a commitment with other parties that the shares would be purchased.