SEC affirms order regarding improper tender action
January 31, 2014 00:00 By The Nation
The Securities and Exchange Commission has affirmed its order for Bee Taechaubol promptly to rectify the tender offer for Electronics Industry Plc's shares as stipulated by the rules.
Bee was found guilty of buying up EIC shares through the Stock Exchange of Thailand at higher than the tender offer price, which was a violation of SEC rules, even though he has already sold the entire purchased amount.
Bee on Monday explained in writing his purchase of EIC shares to the SEC’s committee on business takeovers.
The fact that Bee sold all 1.02 million EIC shares at the acquired price on the same trading day was not new and had been taken into the committee’s consideration, so the committee’s opinion remains unchanged.
The fact that Bee filed a cancellation notice to his brokerage, Globlex Securities Co, to void the purchase transactions also has no effect on the committee’s opinion because the purchases of EIC shares had already been made.
Despite the sale of the entire amount of EIC shares acquired through the SET, Bee’s action, causing an inconsistent tender offer price or form for all shareholders, was deemed a violation of the tender-offer rules promulgated under Section 247 of the Securities and Exchange Act.
The SEC has instructed Bee to make prompt rectification accordingly as well as to disclose such information to EIC for further dissemination through the SET information system.