CBG Plunges 4% on the Report of “Sathien Setthasit” Selling 2.25% Stake of CBG!

The share price of Carabao Group Public Company Limited (CBG) on May 27, 2020, plunged ฿4.25/share or 4.25% to close the morning session at ฿95.75/share with a trading value of 3,573 million baht.

 

The plummet might due to the report of CBG’s major shareholder, Mr. Sathien Setthasit, who sold 2.25% or 22,500,000 shares of CBG through a private placement transaction on May 26.

 

In the clarification published on the Stock Exchange of Thailand, CBG stated that the company was notified by Mr. Sathien Setthasit, Chairman of the Board of Directors and the major shareholder, regarding the sales of 22,500,000 shares (i.e. 2.25% of CBG’s registered and paid-up capital) to a number of domestic and/or foreign institutional investors on May 26, 2020.

As a result, Mr. Sathien’s holdings, including both direct and indirect means, decreased effectively from a total of 34.37% to 32.12% post transaction. Mr. Sathien monetized part of his equity interest and used the proceeds to the main advantage of funding support to the joint venture companies’ business operations in the People’s Republic of China, which in turn had a tendency to benefit CBG in terms of growth prospects.

Mr. Sathien also expressed that he’s full of intentions to continue as one of the major shareholders amongst managerial duties to CBG.

 

Regarding such joint venture companies, they have maintained operational presence in the People’s Republic of China since 2017 to date, being privately held and established in collaboration between CBG’s major shareholders and a Chinese partner to engage in marketing, sales and distributions of energy drinks and other drinks under Carabao trademark in the People’s Republic of Chinaand other territories under the terms and conditions of the relevant agreements