Thonburi Healthcare Group PCL. (SET: THG) has seen its price dramatically decrease by as much as 24% to THB 19.10 this morning during the first opening, being an aftermath of the potential frauds exploited by its subsidiaries.
THG’s board of directors passed a resolution to notify the Stock Exchange of Thailand (SET) of inconsistency in transactions carried out by two of its subsidiaries with regards to internal borrowings, purchase orders made with no deliverable, and the THB 105 million outstanding debt. Below are details of the suspected accounts, according to THG’s clarification letter dated September 20, 2024.
August 23, 2024, THG’s audit committee discovered two of its subsidiaries – namely, Thonburi Bamrungmuang Hospital Ltd. (“THB”) with 83.03% of its shares held by THG; and TH Health Ltd. (“THH”) with 51.22% of its shares also held by THG. Both subsidiaries have conducted the following transactions:
- From December 2022 to 2023, THB and THH lent THB 145 millions spreaded over 6 loans to Ratchathani Phattanakarn (2014) Ltd. (“RTD”), a company with the Vanasin family as the majority shareholder;
- THB in 2023 lent THB 10 million to Thai Medical Groups Ltd., a company with RTD as the majority shareholder; and
- THH in 2023 placed two orders amounting to THB 55 million to procure goods from Scientific Software Solutions Pte Ltd, a Singaporean company with sole proprietor, without receiving any goods so far.
Such were carried out by some of the subsidiaries’ management who acted outside of their respective obligations, in violation of their own internal regulations as well as the Securities and Exchange Commission’s and SET’s announcement on Related Parties Transaction (RTP), nor approved by THG’s board of directors. Currently, the outstanding debt accrued from the above transactions sits at THB 105 million excluding interests.
In light of the preceding situation, THG has initiated remedial actions by immediately removing any personnel related to the suspected frauds and, upon investigation, taking disciplinary and legal actions on any relevant suspects to protect THG’s and its shareholders’ interest.
According to the book on the closing date (June 28, 2024), the Vanasin family was the majority shareholder of THG, holding directly and indirectly 21.51% of THG’s distributed shares. Furthermore, the family also held 40.80% of RTD, while both jointly held 36.1% of Thai Medical Groups Ltd.
Doctor Boon Vanasin, founder and former CEO of THG told “Kaohoon” the disclosure of the aforementioned to the SET on September 20 was performed as per usual, reflecting the transparency in THG’s business operation. Meanwhile, the prosecution of the above issues has been commenced for over a month after which THG would win the case.
Today (September 23), THG has submitted another clarification letter to the SET to attest the authenticity of the precedent explanation, asking investors, shareholders and news outlets to acknowledge THG’s principles in good governance and transparent business practice, while reaffirming the necessary steps undertaken by THG to resolve the issues as soon as possible.
