– The SEC Settlement Committee has imposed fines on (1) Korsak Chairasmisak, (2) Piyawat Titasattavorakul, (3) Pittaya Jearavisitkul, and (4) Athueck Asvanund at a total amount of 33,339,500 baht for using inside information to purchase shares of Siam Makro Public Company Limited (MAKRO), and (5) Somsak Chiarawisithkul and (6) Areeya Asvanund at a separate, equal amount of 333,333.33 baht for aiding and abetting in the aforesaid insider trading.
Bangkok, December 2, 2015
According to a referral from the Stock Exchange of Thailand (SET) and the SEC’s own investigation, the aforesaid individuals from (1) to (4) had purchased MAKRO shares based on non-public information material to the price of MAKRO shares.
The findings revealed records of purchase transactions in the trading accounts of the four individuals or the two aiders from (5) to (6) during 10-22 April 2013 which was the period when CP ALL Public Company Limited (CPALL) was in negotiation with SHV Netherland B.V. (SHV) to purchase 154,429,500 shares or 64.35 percent of the total ordinary shares sold of MAKRO then held directly and indirectly by SHV, at 787 baht per share significantly higher than the market price, thus requiring CPALL make a tender offer for acquisition of all MAKRO shares at the same price.
The individuals from (1) to (4) took advantage of the material, non-public information which some of them had learned while working in the management team of CPALL during the negotiation of the purchase deal with SHV. In addition, some of them had accessed to such information by virtue of their positions as directors and executives of CPALL.
In this regard, 118,300 shares were purchased via the trading account of Korsak, and 5,000 shares via Piyawat’s trading account. In the case of Pittaya, 7,500 shares were purchase via his brother Somsak’s account. In the case of Athueck, 6,000 shares were purchased via his daughter Areeya’s account.
The misconducts committed by Korsak, Pittaya, Piyawat and Athueck, who had a privileged access to the inside information were liable to violation of Section 241 of the Securities and Exchange Act (SEA) B.E. 2535. Meanwhile, Somsak and Areeya, as aiders and abettors of Pittaya and Athueck, were in violation to Section 241 of the SEA in conjunction with Section 86 of the Penal Code.
All of the six individuals above had agreed to enter the settlement process. The Settlement Committee consequently fined Korsak at the amount of 30,228,000 baht, Piyawat at the amount of 725,000 baht, Pittaya at the amount of 979,500 baht, and Athueck at the amount of 1,407,000 baht. Meanwhile, Somsak and Areeya were separately fined at an equal amount of 333,333.33 baht.