No. 48 / 2015
Monday 20 April 2015
Bangkok, April 20, 2015 – The SEC revealed that the Settlement Committee imposed a total fine of 6,254,024 baht on Sermkhun Kunawong, Chief Executive Officer and Director of CMO Plc. (CMO) for using inside information to trade CMO shares along with failure to report the changes of his CMO shareholding and launch a tender offer for CMO shares.
With the referral from the Stock Exchange of Thailand, the SEC’s probe found that during April 23 – May 14, 2012, Sermkhun had purchased CMO shares through his securities trading account by using non-public information material to CMO share price concerning CMO Q1/2012 operational result with 67.14 million baht net profit. Later, during August 8 – September 13, 2012, he purchased CMO shares through another person’s trading account based on the information concerning 2012 interim dividend payment and warrants to purchase CMO ordinary shares to be issued and allocated to existing shareholders for free. Following public disclosure of such information, he sold all CMO shares acquired during the latter period.
The aforesaid actions were in violation of Section 241 of the Securities and Exchange Act B.E. 2535 (1992) (SEA), the Settlement Committee therefore imposed a fine on him in the amount of 5,420,324 baht.
In addition, Sermkhun did not file with the SEC the reports on changes of his CMO shareholding within the specified period of time despite the fact that his acquisition and disposal of CMO shares resulted the increase and decrease in his CMO shareholding which crossed 50% of the total voting rights. Moreover, when the acquisition of CMO shares caused his shareholding to exceed 50% of the total voting rights, he did not launch a tender offer under the takeover regulations. As his actions were in violation of Sections 246 and 247 of the SEA, the Settlement Committee therefore imposed fines on him in the amount of 626,700 baht and 207,000 baht, respectively.