DNA told of risk in share disposal

The Stock Exchange of Thailand (SET) has informed MAI-listed DNA 2002 Plc (DNA) that it may be classified as a cash company after DNA's shareholders approved the disposal of its shares of DNA Retail Link Co Ltd (DRL).

"According to the resolution of DNA's shareholders at the extraordinary general meeting on Dec 24, DNA approved the disposal of DRL shares [at a] total investment value of 168 million baht," said the SET statement.

"DNA may be classified as a cash company or a listed company having all or a substantial amount of its assets in the form of cash or short-term securities."

In addition to the share disposition, DNA has decided to cancel investments in Paynow and Thai Call Centre Service, making Samed Utilities the company's sole investment.

The investment project is uncertain and unable to recognise the revenue, according to the SET.

Earlier, DNA was reported to be seeking shareholder approval of the sale of all shares held by DRL to Banana Group at a value of 168 million baht. Banana Group is a subsidiary of SET-listed Com7 Plc.

A share disposition requires shareholder votes of at least three-fourths of total shareholders attending the meeting who are entitled to vote.

But an independent financial adviser (IFA) advocated a "no" vote on the share sale because DNA will not be able to recognise revenue and profit from sales of mobile phones and telecom accessories, which are its main revenue sources, if all equities are sold to Banana Group.

DNA's assets will also be significantly reduced as DRL's business contributes 87% of total revenue, according to the IFA.

By disposing all or nearly all of the company's assets used for business operations, the company's assets will be classified as cash or short-term securities and as such the company is no longer suitable to be listed on the bourse, said the SET statement.

"A listed company needs to file a report showing [its] financial position has been reviewed by an auditor within 30 days from the date of the [share] disposition and take action to ensure that it is no longer a cash company within six months from the date the SET receives the reviewed financial statement after the disposition in order to not [be classified as] a delisted company," said the statement.

DNA shares closed yesterday on the Market for Alternative Investment at 0.24 baht, down eight satang, in trade worth 14.9 million baht.