Thai stock exchange suspends Energy Absolute from trading due to fraud allegations

The Stock Exchange of Thailand (SET) suspended trading in Energy Absolute Public Company Limited (SET: EA) stock on Monday morning, July 15, 2024, after the SEC accused top executives of fraud.

The SET places an “H” on EA’s securities and requests further clarifications on the potential financial impact, particularly with regard to outstanding debt, in particular loans and bonds due in 2024. In addition, clear guidelines on the repayment of these liabilities and the impact on the company’s management are requested.

This investigation follows the SEC’s censure of EA’s board of directors and officers for engaging in fraudulent activities that harmed EA and its subsidiaries. This information is critical because it could materially affect the Company’s financial condition and business operations, including decisions related to the purchase and sale of EA securities.

The Securities and Exchange Commission (SEC) announced on Friday that it is charging Mr. Somphote Ahunai, CEO of Energy Absolute Plc (SET: EA), Mr. Amorn Sapthaweekul, director of EA, and Mr. Pornlert Taecharattanopas, as well as EA’s subsidiaries, including EA Solar Nakornsawan Co., Ltd. and EA Solar Lampang Co., Ltd., with fraud.

According to the SEC, the three individuals were found to have been involved in fraudulent activities between 2013 and 2015 involving the procurement of overseas equipment and/or software for use in EA’s solar power plant construction project through the two subsidiaries, whereby all three individuals stole a total amount of 3,465.64 million baht.

Prior to the suspension, EA announced this morning the decision of its Board of Directors to appoint new Board members to replace the resigning Board members.

1) Mr. Chachawan Jiaravanon, Director (replacing Mr. Patiparn Sukorndhaman)

2) Mr. Vasu Klomkliang, Director, Acting CFO (replacing Mr. Amorn Sapthaweekul)

3) Mr Chatrapol Sripratum, Director (replacing Mr Somphote Ahunai)

EA added that its debt matures in Q3 and Q4 2024 and consists of approximately 3,200 million baht of debt from financial institutions and 5,500 million baht of bonds, which can be repaid with approximately 5,000 million baht of cash flows from solar and wind power assets (net of premiums for expiring projects), as well as a reserve line from financial institutions and additional bonds that will be offered. The bonds are currently being filed for sale with the SEC.