Thai investment firm denies Chinese firm’s fraud charge

[webfact]

Thai investment firm denies Chinese firm’s fraud charge



BANGKOK: -- A Thai investment firm, Naddasri Co Ltd, has denied charge by a Chinese investment firm that it has deceived the firm to buy majority stakes with promise to gain management control in a hotel in Chiang Mai but was later rejected.

In a statement released by Naddasri Co Ltd, the major shareholder (89%) of Dhara Dhevi Hotel which owns and operates Dhara Dhevi Chiang Mai hotel, formerly known as Mandarin Oriental hotel, it said the Chinese firm, Yunnan Haicheng Industry Group had reached agreement to purchase 49% of shares in 2011 from shareholders of the company with another 2% to be handed over to a firm trusted by the Chinese firm, to gain a 51% majority stake.

It said 45% of shares had been sold to the Chinese firm after 11 billion baht was paid.

The statement said there was no agreement that the Chinese firm would be given the management right in the hotel after it gained majority stake.

In fact it was the Chinese firm that breached agreement with shareholders which resulted in their refusal to sell the rest to it.

The statement said allegation that it has changed its articles of association to increase shareholding stake to 80% to gain management control of the hotel was groundless.

Naddasri made clear in its statement that the company has no intention to allow the Chinese firm to manage its hotel whatsoever, and its allegation of changing the regulations was false.

The Thai firm said allegations by the Chinese firm has tarnished the reputation of the firm, and therefore it was considering legal action against it.

The Chinese firm lodged complaint with the CSD police, the Stock Exchange of Thailand (SET), and the Bank of Thailand, saying it was deceived.

Source: http://englishnews.thaipbs.or.th/thai-investment-firm-denies-chinese-firms-fraud-charge


-- Thai PBS 2015-01-22

[Fiddlesticks]

Of course the Chinese were wrong, Thai are NEVER wrong. When have you ever heard of a Thai company cheating someone? It is unheard of!

In reality, it's probably just two sets of partners that deserve each other. Just a reminder to never do business with any Asian company, or business partner.

[clockman]

Well, 90% sure that the Thai involved is Sino Thai.!

[Thai at Heart]

I have a feeling that this won't be settled amicably. This bloke sounds delightful

http://www.shanland.org/index.php?option=com_content&view=article&id=3406:chinese-tycoon-building-khun-sa-museum-&catid=93:general&Itemid=291

I won't ask how someone from Xishhunbanna ends up being quite such a massively wealthy individual.

http://www.forbes.com/sites/robertolsen/2013/03/27/hong-kong-invites-fraud-to-solve-nonexistent-problem/

Will be interesting to see how the Thais fair dealing with such an upstanding member of the mainland Chinese business (cough, cough) elite.

[Bluespunk]

"The Thai firm said allegations by the Chinese firm has tarnished the reputation of the firm, and therefore it was considering legal action against it."

Please sir, he said something nasty about me.

Edited January 22, 2015 by Bluespunk

[mikeinbangkok]

Of course the Chinese were wrong, Thai are NEVER wrong. When have you ever heard of a Thai company cheating someone? It is unheard of!

In reality, it's probably just two sets of partners that deserve each other. Just a reminder to never do business with any Asian company, or business partner.

[ChrisY1]

A Chinese company accusing a Thai company of fraud..........??

[mikeinbangkok]

It's amazing how people can make derogatory and racist remarks against all Asians because of an Alleged fraud that might have taken place in this case. Only Morons who do not have two cents worth of brains would make stupid comments like not doing any business with Asian countries. Perhaps attempting some simple 3rd grade reading as to how much China, Japan and the rest of Asia contributes to the Western economy would be highly useful.

[Nemesis7]

So now the Chinese has to lose 11 billion Bhat for trusting Thai business partners. Amazing Thainess

[Ulic]

I am just a little confused, an agreement was reached for 49% but 45% was turned over after 11 billion baht was paid.

So I am guessing the remaining 2% was not enough when added to the 45% to gain control. No need to change the

management agreement to require 80% of the shares to gain management control. It seems to me the Chinese company

should have bought the 2% stake first for a small amount and the 49% stake handing the large amount of money over then.

As it stands now the deal should just be unwound as it appears to have been done in bad faith. That or the ruling should

go against the Thai company as the deals looks to have been structured around gaining 51% and control of management.

[halloween]

The truth of the matter lies in this statement "Naddasri made clear in its statement that the company has no intention to allow the Chinese firm to manage its hotel......"

Note the word "its" - who does it refer to? If to the Thai company, why are they prepared to sell majority of ownership? If it refers to the Chinese company, why would they pay for majority ownership if management wasn't included as expected?

[HiSoLowSoNoSo]

I have a feeling that this won't be settled amicably. This bloke sounds delightful

http://www.shanland.org/index.php?option=com_content&view=article&id=3406:chinese-tycoon-building-khun-sa-museum-&catid=93:general&Itemid=291

I won't ask how someone from Xishhunbanna ends up being quite such a massively wealthy individual.

http://www.forbes.com/sites/robertolsen/2013/03/27/hong-kong-invites-fraud-to-solve-nonexistent-problem/

Will be interesting to see how the Thais fair dealing with such an upstanding member of the mainland Chinese business (cough, cough) elite.

Zhou Kun, President of the Yunnan Hai Cheng Industrial Group Stock Co.Ltd. (the Chinese investor) seems to be a perfect partner for the Thai hotel owner

"He might be a druglord,” Zhou was quoted as saying. “But not a grain of his white powder (i.e. heroin) was exported to China.”

[Thai at Heart]

I have a feeling that this won't be settled amicably. This bloke sounds delightful

http://www.shanland.org/index.php?option=com_content&view=article&id=3406:chinese-tycoon-building-khun-sa-museum-&catid=93:general&Itemid=291

I won't ask how someone from Xishhunbanna ends up being quite such a massively wealthy individual.

http://www.forbes.com/sites/robertolsen/2013/03/27/hong-kong-invites-fraud-to-solve-nonexistent-problem/

Will be interesting to see how the Thais fair dealing with such an upstanding member of the mainland Chinese business (cough, cough) elite.

Zhou Kun, President of the Yunnan Hai Cheng Industrial Group Stock Co.Ltd. (the Chinese investor) seems to be a perfect partner for the Thai hotel owner

"He might be a druglord,” Zhou was quoted as saying. “But not a grain of his white powder (i.e. heroin) was exported to China.”

Well, I will remind the man at my door that I didn't say it.

Someone in Chiangmai is about to realise he has bitten off a big more than he can chew.

[rickirs]

When you deal with a Chinese-based large, wealthy company, you are dealing de facto with the Chinese government. Those kind of businesses only exist in China with the cooperation and perhaps even partial investment of the Chinese ruling class. So the dispute between the Thai company and the Chinese company will quickly evolve into a contest between the Thai and Chinese governments. That is a conflict deserving of these two undiciplined partner governments.

[rickirs]

A Chinese-based company pays for 51% of the stock in a Thai-based company and gets only 45% of the stock. Foreigners in Thailand pay 100% of Thai-based company stock and get 49%.

What are the Chinese complaining about? They got a great deal!

[kalbo123]

Don't know what the big deal is about, in many counties the farmers are subsidized, that costs the government money.

I would not call that fraud..what individuals do after that is an other story, but you can not blame a government for trying to help farmers...

Edited January 24, 2015 by kalbo123