Technology
SEC Thailand Questions CHO Over 1.4 Billion Baht Software Acquisition
The Securities and Exchange Commission (SEC) has ordered Cho Thavee Public Company Limited (CHO) to justify a software purchase price that significantly exceeds independent valuations.
According to a report by Khaosod Online Thailand, the Securities and Exchange Commission (SEC) has formally requested that Cho Thavee Public Company Limited (CHO) provide clarification regarding a planned 1.4 billion baht software acquisition. The regulatory scrutiny follows an assessment by an Independent Financial Advisor (IFA), which estimated the fair value of the software to be between 131 and 146 million baht—a figure roughly 9 to 10 times lower than the proposed purchase price.
CHO intends to fund this acquisition by issuing and allocating new ordinary shares to the software seller. The SEC has mandated that the company review the reasonableness of this transaction and submit its findings by August 27, 2026. Furthermore, the company must disclose this information via the Stock Exchange of Thailand’s SETLink system before its Extraordinary General Meeting of Shareholders, scheduled for August 28, 2026.
For residents and investors, this development highlights the importance of corporate governance and transparency in Thai public companies. While the software acquisition is currently under regulatory review, the primary matter to be confirmed is how CHO will justify the valuation discrepancy to its shareholders. The outcome of the upcoming shareholder meeting will be critical in determining whether the transaction proceeds as planned or faces further adjustments.