Chavinda Hanratanakool, Chairwoman of the Association of Investment Management Companies (AIMC), announced that the association is set to meet with its members next week to discuss CPAXT’s investment in ‘Happitat at The Forestias’.
Last Friday, CP Axtra Public Company Limited (SET: CPAXT) announced an establishment of Axtra Growth Plus Ltd. (AGP), in which it holds a 95% stake. AGP is investing in Happitat at The Forestias Co., Ltd. (HATF), engaged in Mixed-Use Development under The Happitat project. The discussion will focus on Good Corporate Governance, as the investment may qualify as a related transaction or involve registered company dealings with related parties. There is a report that the Stock Exchange of Thailand also held internal discussions on this matter today.
“Today’s verdict on CPAXT reflects investor concerns, especially among institutional investors. We need to examine the Good Corporate Governance aspects and identify any concerns for discussion in our meeting,” Chavinda stated.
Although CPAXT has disclosed its clarification through the Stock Exchange of Thailand this morning (December 16th) that the transaction does not qualify as a related transaction, a comprehensive review beyond legal or regulatory terms is necessary to ensure reasonable business conduct. This reflects a proactive approach to maintaining investor confidence and corporate integrity.
About AIMC
AIMC was registered and granted a license by the Office of the Securities and Exchange Commission on May 10, 1994, as an association in relation to investment management business. AIMC is a non-profit organization funded by its members which are securities companies licensed to operate investment management business and/or to sell/distribute units of mutual funds.
Currently, AIMC members are characterized by their operating businesses and are divided into three groups: (1) Mutual Fund Business, (2) Provident Fund and Private Fund Business, and (3) Property Fund, Real Estate Investment Trust, and Infrastructure Funds/Trust Business. Each of the business groups will have its committee administering and supervising the members to ensure that the objectives of the group are served and that their business conducts are ethical.
