Hong Kong court prevents WEH divestment
Injunction stops Kasem selling 37.8%
Documents show the High Court of Hong Kong issued an injunction prohibiting a company owned by Kasem Narongdej from divesting itself from Wind Energy Holding’s (WEH) shares, bolstering suspicions of inappropriate behaviour in the company and confirming the involvement of the Narongdej patriarch in the scandal.
The WEH saga continues with all the plot twists and drama of a soap opera. The High Court of Hong Kong prohibited Golden Music Limited, a Hong Kongbased firm owned by Kasem Narongdej, from selling its 37.8% stake in WEH, a renewable energy firm led by Mr Kasem’s son Nop Narongdej, according to a document made available to the Bangkok Post by Hong Kong-based law firm Deacons.
WEH has been embroiled in scandal since its original founder, Nopporn Suppipat, fled the country over a lese majeste case.
The company was acquired by Mr Nop, with the support of KPN Group, at a substantial discount in 2014. Between 2014 and 2018 the company embarked on a multi-billion-dollar expansion plan largely financed by loans.
The company received a US$1.14 billion loan from Siam Commercial Bank in 2014. In an interview with the Bangkok Post conducted shortly after, Mr Nop said the company was climbing out of scandal and operating business as usual.
“Everything is in order unless you know something we don’t,” said WEH chief strategy officer Aman Lakhaney.
In a phone call, Thun Reansuwan, chief financial officer of WEH, said the Hong Kong court injunction, issued on May 18, is still confidential, and that WEH has not issued a response to it.
The document makes reference to a lawsuit undertaken in January 2018, in which Symphony Partners Ltd, Next Global Investments Ltd, and Dynamic Link Ventures Ltd, three Hong Kong companies with the same address, “initiated criminal proceedings in Bangkok’s South Municipal Court against Mr Kasem and 12 other defendants for cheating against creditors”.
“The case has yet to have its first hearing to decide whether there is any merit to their claims,” said Mr Thun.
Deacons’ letter also states Mr Kasem received 64,717,411 shares, or 59.46% of WEH’s shares, in April 2016 from KPN Energy (Thailand) Co. In late April the Narongdej family issued a statement claiming that “no member of the Narongdej family, including Mr Kasem, Kris Narongdej and Korn Narongdej, are involved in WEH, and any statements that linked them to the company will be considered impersonation.”
Mr Thun declined to comment on the discrepancy, saying “it is internal organisation”.
In that same letter, the family said it “reserves the right to take legal action against the source of any such statements.” Unlike his family, Mr Nop has made no public threats of legal action.
Mr Nop has previously characterised the conflict as a mere family feud, and said he would retain his positions as chairman of KPN and chief executive of WEH. Mr Nop is no longer listed as KPN chairman as of today based on the company’s website.
Loans and financing are still in place after the commencement of the lawsuit, according to Mr Thun.
Deacons was not available for comment.