Two Thai listed companies with Capital Asia Investments (CAI) as a major shareholder have come under pressure following reports linking the Singapore-based fund to alleged money laundering and scam-related transactions.
VGI Global Media (VGI) shares fell yesterday after CAI Optimum Fund VCC – EDN Investments was identified as the company’s second-largest shareholder, amid reports connecting the fund to former deputy finance minister Vorapak Tanyawong, who resigned earlier this week.
Shares of VGI, the media and advertising arm of BTS Group Holdings Plc (BTS), fell by more than 5% in early morning trade to 1.28 baht, before recovering to 1.32 baht by midday, down 2.94%. Based on SETSMART data, VGI has dropped more than 24% over the past month.
The latest shareholder list shows CAI Optimum Fund VCC – EDN Investments holds a 14.5% stake (roughly 2.9 billion shares), and is the second largest shareholder after BTS. The fund is based in Singapore and has been linked to financing transactions allegedly connected to Mr Vorapak.
Meanwhile, M Vision Plc (MVP) announced CAI sold its entire 45 million shares, representing a 13.34% stake, to Opas Cherdpunt via a big lot transaction on Oct 22. Following the deal, Mr Opas’s stake increased from 8.53% to 21.87%.
MVP informed the Stock Exchange of Thailand this change in shareholding does not affect the company’s control, business policy, or board composition, nor does it trigger a tender offer requirement, as no shareholder has crossed the mandatory acquisition threshold. MVP traded between 0.52-0.59 baht a share during the morning session and closed unchanged at 0.52 baht with a trading value of 519,000 baht.