Thailand-based Energy Absolute’s (EA) share price dropped nearly 30% for a second consecutive day on Wednesday following fraud allegations against company executives last week. The shares fell 29% against a benchmark gain of 0.22%.
Thailand’s market regulator Securities and Exchange Commission (SEC) accused EA’s CEO Somphote Ahunai and Deputy CEO Amorn Sapthaweekul of fraud related to the procurement of equipment from overseas and/or software for the company’s solar power plant during 2013-2015. A third individual, Phornlert Techarattanopas, was also implicated in a statement issued by the SEC on 12th June.
The alleged fraud, conducted through two subsidiaries, resulted in benefits totaling about 3.5 billion baht ($97 million). The SEC has filed a case with the Department of Special Investigation and the Anti-Money Laundering Office.
Following the allegations, CEO Somphote resigned from his position and the company appointed Somchainuk Engtrakul as acting CEO and the chairman of the board effective on Sunday. It also named Vasu Klomkliang as acting chief financial officer and Chatchaval Jiaravanon and Chatrapol Sripratum as directors.
The company’s shares were suspended by the Stock Exchange of Thailand (SET) on Monday following announcements of board and senior management changes in response to allegations of procurement fraud against the former CEO. SET demanded the renewables company explain its financials and the impact of a fraud probe, according to the Bangkok Post.
EA resumed trading on Tuesday after disclosing it faces 19.5 billion baht in debt due in 2024 and is actively seeking one or more strategic partners.
On Tuesday the company’s shares plummeted 30% to 9.2 baht by 10:18 am, with trading volume at 9.2 million shares, representing 12% of the three-month daily average, as sell orders exceeded buy requests, according to Bloomberg data.
EA is “in the process of negotiating and considering the selection of strategic partner(s)” to boost its strength, repay debt and develop a sustainable business. It also intends to roll over short-term loans and said it still has about 1 billion baht of revenue each month from power plants, according to the company’s filing on late Monday, as reported by Bangkok Post.
