Thai regulator probes mystery investor’s US$1 billion stake in CP Group-backed telecom

[BANGKOK] Thailand’s market regulator is probing the sudden emergence of an individual shareholder who has amassed nearly US$1 billion worth of shares in True Corporation, making her one of the telecom giant’s largest shareholders. 

The Securities and Exchange Commission (SEC) has ordered a swift review of Supaporn Pimphong’s claim that she owns a 7.1 per cent stake in Bangkok-based True in the form of common and preferred shares.

The regulator plans to seek additional information and clarification from the relevant parties in accordance with applicable procedures, the agency said in a statement late Monday (Jul 6). 

Supaporn increased her stake in True from 3.9 per cent earlier by acquiring shares through an international broker, she said in a regulatory filing last week.

Her investment would be worth about 32 billion baht (US$960 million) based on True’s closing price on Monday. 

True is backed by Charoen Pokphand Group (CP Group), one of Thailand’s biggest conglomerates, and is the number two mobile phone service provider.

In January, Arise Digital Technology, controlled by True chairman Suphachai Chearavanont, bought a stake of around 25 per cent in the company from Norway’s Telenor for 39 billion kroner (US$3.9 billion). CP Group and Telenor in 2021 explored a merger of their telecom units.

The purchase came with an option to acquire an additional 5.4 per cent stake in two years.  

Some details in Supaporn’s filing appear to be inaccurate, True said in a statement, noting that the company has never issued preference shares to the public and currently has no preference shares outstanding.

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The company has notified the SEC of the discrepancy, it said.

The Thai regulator has warned of strict legal actions if its probe finds any breaches of applicable regulations.

True said Supaporn’s disclosure regarding her increased stake was marked as preliminary, indicating that the information is incomplete and remains under review. 

Separately, CP Group on Monday completed the sale of a 10 per cent stake in True through a series of transactions, according to a statement.

Most of the stake was sold to UBS Group, according to company filings. True’s shares fell as much as 1.5 per cent on Tuesday, paring gains this year to 18 per cent. BLOOMBERG