Thaifoods Group CEO steps down after insider trading penalty
The company says day-to-day management is being handled by senior executives and the board.
THAILAND – Thaifoods Group has announced the resignation of its chief executive officer Winai Teawsomboonkij following a regulatory finding that he engaged in insider trading involving the company’s shares.
The meat producer confirmed that Teawsomboonkij has not been involved in company operations, management, or decision-making since he resigned.
In a filing released on 8 January, the company stated that the departure followed civil penalties imposed by Thailand’s Securities and Exchange Commission related to the misuse of non-public information.
The regulator’s action dates back to an investigation that began after the Stock Exchange of Thailand referred the matter to the SEC in November 2016, prompting a formal review of trading activity linked to Thaifoods securities.
Following its investigation, the SEC said it had reasonable grounds to conclude that Teawsomboonkij and five other individuals traded the company’s shares and warrants between March and August 2016 using confidential financial information.
According to the regulator, the information related to the company’s first- and second-quarter operating results for 2016, which reflected strong performance that had not yet been disclosed to the market.
Based on those findings, the SEC ordered Teawsomboonkij to pay a civil fine of US$35.6m (US$), making it one of the more substantial insider trading penalties issued by the Thai regulator.
The SEC’s ruling concluded that the trading activity breached securities laws governing fair disclosure and market integrity, resulting in enforcement action against all six individuals involved.
Interim leadership arrangements
In its latest disclosure, Thaifoods said its chief operating officer, Phet Nantavisai and chief financial officer, Siriluck Tangwiboonpanich, are overseeing the company’s affairs together with the board of directors.
The company added that it has begun identifying and appointing new executives to fill the vacant leadership positions created by the resignation.
Thaifoods also stated that it remains focused on executing its business plans and maintaining operational continuity during the leadership transition.
Company background
Teawsomboonkij established the business in 1987, starting with a single chicken farm in Lopburi Province, central Thailand.
The company was incorporated as Thai Food (2001) Co., Ltd. in 2001 before undergoing a corporate restructuring in 2014, when it adopted the name Thai Foods Group Public Company Limited.
Thaifoods subsequently listed its shares on the Stock Exchange of Thailand in 2015, giving it access to public capital markets.
Today, the group operates as a vertically integrated food producer, with a primary focus on poultry and pork, and runs farming, processing, and distribution operations in both Thailand and Vietnam.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
