Chavinda Hanratanakool, Chairwoman of the Association of Investment Management Companies (AIMC) said that the association will be inviting CP Axtra Public Company Limited (SET: CPAXT) to its meeting on 24 December to discuss several topics regarding the company’s recent investment.
The transparency issue over CPAXT’s investment in the Happitat project by Happitat at The Forestias Co., Ltd. (HATF) has raised concern over CPAXT’s Good Corporate Governance, as the investment may qualify as a related transaction. CPAXT will be required to explain this to AIMC during the meeting.
AIMC would like to discuss further about the reason why CPAXT invested in the Happitat project, even though the company has said that the investment has been following the guidelines and received approval from the Securities and Exchange Commission (SEC).
The chairwoman of AIMC noted that the corporate governance concerns derive from the connected transaction within the CP Group.
On 16-17 December, CPAll and CPAXT shares faced a heavy selloff as investors chose to lower the risk over these concerns. During that period, institutional investors sold THB 2,375 million worth of CPAXT and THB 3,731 million worth of CPALL shares.
