Amid the plummet of Thai stock market that closed the morning session -4 points, the share price of Jasmine International Public Company Limited (JAS) rose ฿0.20/share or 3.60% to ฿5.75/share with a trading value of THB 242 million. The highest price in the morning session was ฿5.80/share and the lowest was ฿5.65/share.
The hike despite bad sentiment in the market was due to the earlier announcement of the Arbitration Award with respect to the two disputes between Jasmine Submarine Telecommunications Co., Ltd. (JSTC), a subsidiary of JAS, and the disputed party as follows:
1) The dispute between JSTC (the Claimant) and a company (the Respondent), and another company (the Interpleader), whereby JSTC had submitted the dispute to the Thai Arbitration Institute, Office of the Judiciary, claiming that the Respondent make payment of the revenue share with respect to the Joint Venture Agreement for the Submarine Optical Fiber Cable Project (Eastcoast) (the “Joint Venture Agreement”) in the amount of approximately THB 3,395 million.
On 8 May 2019, the Company received the Arbitration Award of the Arbitral Tribunal dated 29 April 2019, whereby the Arbitral Tribunal had rendered the Award which can be summarized as follows:
the Respondent makes payment of the revenue share for the period from September 2008 to 3 October 2011 together with interest in the amount of THB 2,517,742,568.66 until the date of the submission of the dispute (22 December 2014) plus the interest of THB 877,608,644.07. The principal amount together with the interest is totaling THB 3,395,351,212.73.
Moreover, the Respondent shall be required to make payment of interest at the rate of 7.5 percent per annum on the principal of THB 2,517,742,568.66 from the date of the submission of the dispute until payment is made in full.
Thus, the total amount the Respondent is required to pay is THB 4,223,102,194.21 (calculated based on the interest rate of 7.5 percent per annum from the date of the submission of the dispute until 9 May 2019).
In this regard, in receiving the revenue share, the conditions of the Assignment of Rights and Duties for Receiving Payments under the Concession Contract must be complied with and be in compliance with the practice of receiving the revenue share from the Respondent of JSTC and the Interpleader. The Interpleader is entitled to receive the revenue share of THB 425,719,738.16 (at the end of 2017), and the remaining revenue share shall be paid to JSTC.
2) Joint Venture Agreement, whereby a company (the Claimant) had submitted the dispute to the Thai Arbitration Institute, Office of the Judiciary, claiming that JSTC (the Respondent) make payment of the revenue share which the Claimant claimed that JSTC was overpaid under the Joint Venture Agreement, together with the costs of repair of the tools, equipment, and properties in the Submarine Optical Fiber Cable Project (Eastcoast), and the costs associated with the loss of business opportunities in the amount of approximately THB 9,931 million.
On 8 May 2019, JAS received the Arbitration Award dated 29 April 2019, whereby the Arbitral Tribunal had rendered the Award which can be summarized as follows: JSTC merely makes payment of THB 15,821,600 for the costs, together with the interest at the rate of 7.5 percent per annum on the principal of THB 15,821,600 from 29 April 2015 until payment is made in full to the Claimant, provided that the interest calculated from the date of the submission of the dispute (19 August 2016) shall not exceed THB 11,522,128.23.
In this regard, JSTC is not obligated to make payment of the revenue share and other claims in the amount of approximately THB 9,900 million to the Claimant with respect to the abovementioned dispute.