Risks from the Control of Major Shareholder
As of October 3, 2018, Thai Beverage Public Company Limited or ThaiBev is the major shareholder of the Company with 79.66% of shareholding in the paid-up capital. ThaiBev, therefore, is able to control the resolutions of the Shareholder’s Meeting including the Director’s appointment, approval on other matters that require a majority vote from the Shareholder’s Meeting and agendas which by laws or by the Articles of Association of the Company, require 3 out of 4 votes of the Shareholder’s Meeting. Hence, other shareholders might not be able to collect enough votes to counter the agendas raised by the major shareholder.
However, in order to achieve business transparency and good corporate governance, the Company has set an organizational structure consisting of potential and knowledgeable employees and provided them with clear roles and responsibilities. The Company has also appointed the Audit Committee consisting of 3 independent directors, which have no interests in the Company in order to monitor and review the Company’ operations and protect the interests of minority shareholders resulting in appropriate check and balance and verifiable system.
Risks from Low Free Float of the Company’s Securities, Which May Result in Transaction Liquidity in the Stock Exchange of Thailand (SET)
As of October 3, 2018, the Company has free float of 20.34% which results in relatively low liquidity transaction of the securities listed in the Stock Exchange of Thailand (SET). Shareholder may have some risks of not being able to sell the Company’s shares immediately at desired price.
Nevertheless, the Company will continue to monitor and maintain appropriate free float level for shareholders on an on-going basis.