SEC orders CHO to clarify 1.4 billion baht software purchase

MGR Online•Economy•2d ago

Reader Briefing

The SEC has ordered CHO to clarify and review the reasonableness of a 1.4 billion baht software acquisition paid for with shares.

•The SEC ordered CHO to provide information and review the reasonableness of a 1.4 billion baht software purchase by August 27, 2026.
•CHO planned to pay for the software by issuing 190.47 million private placement (PP) shares at 7.35 baht per share.
•An Independent Financial Advisor (IFA) valued the software at only 131.11-146.46 million baht, which is 9-10 times lower than the purchase price.
•The SEC raised concerns regarding the software's commercial revenue generation and the assumptions used for the 1.4 billion baht valuation.

•The SEC ordered CHO to clarify details and review the reasonableness of the asset acquisition of software valued at 1.4 billion baht.
•CHO must submit the clarification and review to the SEC and disclose the information via the SETLink system by August 27, 2026.
•CHO scheduled an Extraordinary General Meeting of Shareholders No. 1/2026 on August 28, 2026, to approve the issuance of 190.47 million PP shares.
•The IFA estimated the fair value of the software at 131.11-146.46 million baht, while the purchase price was set at 1.4 billion baht.
•After the PP share allocation, the investor would hold a 19.91 percent stake and become the highest voting shareholder of CHO.
•The SEC noted a lack of evidence regarding the software's use for commercial revenue and questioned the foreign evaluator's assumptions.
•The SEC exercised power under Section 58 (1) of the Securities and Exchange Act 1992 to issue the order.
•CHO is required to disclose the requested information to the public through the Stock Exchange of Thailand's SETLink system.

Full article content is available on the original source.

Securities and Exchange Commission(สำนักงานคณะกรรมการกำกับหลักทรัพย์และตลาดหลักทรัพย์)ℹ️

The regulatory body that ordered CHO to clarify the software purchase transaction.

Cho Thavee Public Company Limited(บริษัท ช ทวี จำกัด (มหาชน))

A company (CHO) ordered by the SEC to review the reasonableness of a 1.4 billion baht software acquisition.

Stock Exchange of Thailand(ตลาดหลักทรัพย์แห่งประเทศไทย)ℹ️

The entity whose SETLink system is to be used by CHO for public disclosure.

Securities and Exchange Act 1992(พระราชบัญญัติหลักทรัพย์และตลาดหลักทรัพย์ พ.ศ. 2535)

The law under which the SEC exercised its power according to Section 58 (1) to order CHO's clarification.