Bangkok: Korn Chatikavanij, a committee member on finance, received a letter from minority shareholders requesting an investigation into BCPG Public Company Limited's purchase of an oil storage facility for 9 billion baht.
According to Thai News Agency, the Network for Protecting the Interests of Minority Shareholders in the Thai Capital Market, together with minority shareholders of Bangchak Corporation Public Company Limited (BCP), has raised concerns over the transaction. The letter, signed by Mr. Disdej Hiranjirakorn, was addressed to Mr. Korn Chatikavanij and highlighted the need for an investigation into the purchase and potential transnational or suspicious capital investments in the stock market.
The shareholders have expressed dissatisfaction with the purchase of the oil storage facility in Phetchaburi province by BCPG Public Company Limited, a subsidiary of BCP. Initial media reports indicate that in 2010, the facility was offered to BCP for 3 billion baht, a deal that was not pursued. However, BCPG later bought the facility for 9 billion baht in December 2022. Within three months, the facility's book value plummeted to 6.55 billion baht, causing public and shareholder concern over the inflated purchase price and the potential for personal gain from collusion. The network is urging the committee to conduct a comprehensive investigation into the transaction's details, including the initiators, approval process, and the fund flow.
Mr. Korn Chatikavanij acknowledged the petition's submission and emphasized the importance of addressing the minority shareholders' concerns. He noted that the issue had been a topic of discussion in Parliament, highlighting its national significance. The acquisition has raised questions about its transparency and the possible involvement of illicit capital. Mr. Korn assured that the matter would be presented to Mr. Juti Krairiksh, the chairman of the parliamentary committee, and that representatives from the Securities and Exchange Commission, the National Anti-Corruption Commission, and the Anti-Money Laundering Office would participate in the investigation.
Bangchak Corporation Public Company Limited has issued statements declaring its commitment to addressing illicit capital involvement in the purchase. The company's board had approved the acquisition before the target company was formally registered, raising further doubts about the transaction's legitimacy. The decision-making process behind the acquisition has been criticized for its lack of clarity and the absence of financial data justifying the high purchase price. The parliamentary committee will further examine the matter, and relevant agencies are expected to take appropriate action.