Chinese firm seeks CSD hand after accusing a Thai firm of fraud

BANGKOK: -- A Chinese investment firm today lodged a complaint with the Crime Suppression Division (CSD) accusing a Thai firm of fraud after it was deceived to purchase majority stake of a luxury hotel in Chiang Mai but was later denied management right with the change of the articles of association that increases stake holding to 80% to gain the management right from earlier agreed 51%.

The Chinese firm Yunnan Haicheng Industry Group Co Ltd has paid the Thai firm, Naddasri Co Ltd, the company that owned the Dhara Dhevi Chiang Mai hotel, 1.1 billion baht.

According to the Chinese firm’s executive Mr Choey Loey, the purchase deal was agreed at 1.1 billion baht to gain 51% stakes in Dhara Dhevi Chiang Mai hotel, formerly known as Mandarin Oriental hotel which was owned by Naddasri Co Ltd.

The Chinese businessman told CSD police that Yunnan Haicheng Industry Group had bought the agreed stake from Naddasri which had promised to sell its 49% stake in the hotel and to persuade other shareholders to sell another 2%.

He said he had been led to believe with a 51% stake, his company could obtain immediate management right of the hotel.

A contract was then signed and payment was settled at 1.1 billion baht.

However after the payment, he said his company received only 45% of the whole stakes.

Later he learned that the Thai firm has changed its articles of association at a shareholders’ meetings to increase management control to have 80% of all shares from earlier stipulated at 51%.

With the unusual change, he said that his firm would not be able to manage the hotel even it has 51% stakes.

He said this was a fraud as he was deceived.

The Chinese firm also lodged complaint with the Stock Exchange of Thailand (SET) and the Bank of Thailand, urging the state agencies to probe the behaviour of ACAP Advisory Plc, the parent firm of Asset Management Co Ltd, the creditor of Naddasri which owed it 922.5 million baht.

Mr Choey claimed the creditor refused to accept repayment of the last instalment of 2.5 million baht after being paid 920 million baht earlier.

Source: http://englishnews.thaipbs.or.th/chinese-firm-seeks-csd-hand-accusing-thai-firm-fraud


-- Thai PBS 2015-01-14

Dear Mr Nii How!!

Welcome to the wonderful world of doing business in Thailand!!

Typical Thai business dealings. WHY would anybody in their right mind want to do business with Thai businessmen. I have heard so many stories of Thai cheating foreigners and cheating other Thai all so that they can get their hands on another's money. Let's see how this plays out and how it impacts ongoing business dealings with other Chinese firms foolish enough to trust Thai or planning to do business with them. I think only a fool would try.

A Thai firm involved in fraud an absolutely preposterous ridiculous statement deceived to purchase conducting business in Thailand is strictly by the book nothing ever shady here regarding business.

A small reverse in the Sinification (i.e. economic control from Yunnan) of Northern Thailand.

Choey loey? Doesn't sound like a Chinese name. Sounds Thai. Cheree leree 55

Nobody has mentioned so I had to . . . . Thainess!

Hmm, wonder if the Chinese govt will assume that, because of all those generous deals they have recently concluded with the Thai govt, this case will go in their citizens favour?

Interesting to see what happens if it doesn't.

The outcome of this will be very interesting to watch, given Thailand's new dependence on China. Will they be thinking short term or long term?

Can't wait for the next announcement of general happiness that foreigners are lining up to invest in Thailand.

The OP isn't about being defrauded in buying a bar, this is scamming at top level, and will be known by all major players in the business world.

Result of mainland Chinese doing business with Thai Chinese

Isn't it illegal for a foreign firm to control a Thai company other than under the U.S. Amity Treaty?

“Will you step into my parlor?” said the spider to the fly;
“’Tis the prettiest little parlor that ever you did spy."

Isn't it illegal for a foreign firm to control a Thai company other than under the U.S. Amity Treaty?

I think hotels can be 100% foreign owned.

Why should a billionaire company be any different than all of us other foreigners owning anything in Thailand.

Thailand better quit looking at obtaining Chinese money and start thinking that the rich Chinese will not sit back and let Thailand take advantage of them.

Welcome to International Business 101. DONT DO BUSINESS WITH CHINA.

Well someone didnt read the small print

Dear Mr Nii How!!

Welcome to the wonderful world of doing business in Thailand!!

par for the course in s.e. asia

Both players are experienced in their chosen field, the percentage of ownership should have been back dated to the start of these proposals, one has been outsmarted , the other too smart by half , then again doing business with both countries, there is a certain amount of sovereign risk.

Dear Mr Nii How!!

Welcome to the wonderful world of doing business in Thailand!!

They will learn a lot from the Thais.

Typical Thai business dealings. WHY would anybody in their right mind want to do business with Thai businessmen. I have heard so many stories of Thai cheating foreigners and cheating other Thai all so that they can get their hands on another's money. Let's see how this plays out and how it impacts ongoing business dealings with other Chinese firms foolish enough to trust Thai or planning to do business with them. I think only a fool would try.

Hopefully more and more people and companies will fully understand "Thainess" and that LOS stands for Land of Scams.

This will and should amount to criminal behaviour if the shareholders involved in the sale exercised their rights to vote on the increase of ownership levels required for management control. If this had been terms of a contract between the parties, all securities laws aside.

...Thainess.....

...good luck.....

Ah ha...beaten to the fraud punch by the Thais...the Chinese never saw this coming...one would think they have so much more experience than the Thais at this unsavory business end game...

Typical Thai business dealings. WHY would anybody in their right mind want to do business with Thai businessmen. I have heard so many stories of Thai cheating foreigners and cheating other Thai all so that they can get their hands on another's money. Let's see how this plays out and how it impacts ongoing business dealings with other Chinese firms foolish enough to trust Thai or planning to do business with them. I think only a fool would try.

Thai business 101, a contract is just a pause in the negotiations.

Thai business 101, a contract is just a pause in the negotiations.

Nice twist on the version of for the Chinese.

Dear Mr Nii How!!

Welcome to the wonderful world of doing business in Thailand!!

its kinda cute to see a robber steal from a hijacker ..... put a smile on my mug this morning .

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Well someone didnt read the small print

What small print? The Chinese made a deal to purchase 51% that would give them control for operational purposes and all they got was 45%. That's fraud by the Thais. Then the Thais secretly change the Articles of Incorporation to require 80% ownership to control hotel operations. That;s also fraud. So even if the Chinese did get 51% that they purchased, they wtill wouldn't have operational control.

are china co allowed to have more than 49% of a shareholding ?

I think Thailand should not be stupid like other countries and EU !!

Hmm. Defamation claim? Nah! Not against a Chinese company.