SEC names three in 2015 wrongful takeover of NMG
The Securities and Exchange Commission (SEC) has filed complaints with the Economic Crime Suppression Division against News Network Corporation, Polaris Capital and Siwasit Sainampueng, alleging they acted in concert to take over Nation Multimedia Group (NMG) without complying with regulations.
The SEC found the three intended to take over NMG without the correct and complete reporting required to launch a tender offer, the watchdog said in a release.
According to SEC regulations, any parties whose shareholding in a stock exceeds 5% each and crosses a 25% total stake are required to launch a mandatory tender offer for the remaining shares and report their interest. If they do not do so, they are in violation of the Securities and Exchange Act Sections 246 and 247.
The SEC filed a criminal complaint as the three defendants rejected the allegations.
The suspected hostile takeover of NMG by News Network, renamed from Solution Corner; Polaris, renamed from Wattana Capital; and Mr Siwasit flared up in late 2014 after NMG said it found evidence the three were connected. NMG accused Shine Bunnag, a former shareholder of News Network, of being behind the acquisition.
As of NMG’s registration book closing in January 2015, the three parties owned a total of over 25% of NMG’s shares, of which 12.21% was held by News Network, 9.14% by Mr Siwasit and 7.54% by Polaris.
NMG has two digital TV channels, Nation TV and Now 26, while News Network runs the Spring News channel.
The SEC filed a complaint in September 2014 against 11 people accused of manipulating Solution Corner shares after it gathered records kept by the suspects regarding group trading in Solution Corner shares, cash flow within the group, and monthly payments made to seven people who abetted their activities. It also gathered statements from some suspects who admitted control of a share manipulation scheme. The SEC said Mr Shine, Pataman Buranasin and Supichaya Chaimueanvong colluded to defraud investors through fake trading in Solution Corner shares using the trading and bank accounts of Ms Pataman, Ms Supichaya, Meesak Makbumroong, Apinunthakan Pongsathabordee, Tepparit Sihisarapisit, Tree Bunpradphai, Phawit Natapintu, Siriya Dumrong-viteethum, Chanatip Tantipoontham and Thai Bunpradphai.