The Stock Exchange of Thailand (SET) has found no unusual movements in K.C. Property Plc shares after the stock almost hit the 30%-ceiling for a seventh straight trading day.
"The company has already disclosed information to the SET, and we cannot stop investors from investing in the stock. But they should consider and invest cautiously," SET president Kesara Manchusree said yesterday.
The developer's share price surged 29.1% to 11.30 baht yesterday, representing a 629% increase from 1.55 baht at the market's close at the end of last year, also far above the tender offer price of 2.61 baht each.
Even though the SET added K.C.'s stock to its trading alert list for Jan 7-27, the run-up has continued.
The SET's trading alert list measures, which took effect from Jan 5, requires alerted stocks to be restricted to trading in cash for three weeks. If a second alert is issued, another three-week restriction is imposed and the stock is excluded as collateral from trading account calculations. For a third alert, the stock is prohibited from net settlement trade.
K.C. informed the SET on Jan 12 that its major shareholder and president, Chai Ngamarchariyakul, and his group would sell a 58.76% stake to Pattarapob Ittisanyakorn, director of MAI-listed Asia Joint Panorama (AJP), at a price of 2.61 baht apiece or 1.34 billion baht.
The transaction will be made by March 9 through a big lot of up to 43 million shares in each batch, and the buyer will deposit 50 million baht in cashier's cheques with the seller.
Upon completion of the transaction, the seller will return the deposit payment of 50 million baht to the buyer. In case the buyer breaches the agreement, the seller has the right to terminate the transaction and forfeit the deposit. In case the seller breaches the agreement, the seller must return the deposit payment and compensate for damages at 50 million baht, within 15 days from the date of such breach.
The acquisition announcement has added fuel to the red-hot stock.
Pattera Dilokrungthirapop, chairwoman of the Association of Securities Companies, said the SET should not intervene in K.C.'s trading after the company clarified the reason for irregular trade in recent days.
However, investors should consider the company's value resulting from a change in major shareholders.
"The SET has new measures to control shares with unusual trade in hand. Therefore, investors need to keep an eye on possible further measures to stop the share price from overheating," she said.
In the meantime, Anit Osathanugrah, who sits on the AJP board, said AJP had nothing to do with the acquisition by Mr Pattarapob.
AJP has no interest in investing in real estate and retains its core business as entertainment and TV content provider, he said.
However, the company is studying investment in alternative energy.
It expects revenue and net profit this year to be higher than last year following a shift in its core business to TV content provider.