Mr. Sarath Ratanavadi, Chief Executive Officer of Gulf Energy Development Public Company Limited (GULF) has made a comment regarding the transaction of the company’s shares from Asian Development Bank (ADB) to a placement, saying that he had not spoken with ADB, but he respected the rights of GULF’s shareholders.
In the meantime, Mr. Sarath was confident that the transaction was not related to the company’s fundamental evaluation as there were no negative factors in sight, while the company continued its expansions as planned. In addition, Mr. Sarath highly believed that GULF still has rooms to grow in the future.
Earlier this morning, “Kaohoon Online” reported that Asian Development Bank (ADB) is expecting to sell 176,000,000 shares of GULF and 68,000,000 shares of BGRIM at a discount round 4-5%.
Meanwhile, the source close to a financial field revealed to “Kaohoon Online” that ADB was required to allocate its investment in energy stocks due to the impact of the coronavirus outbreak.
It has been anticipated that ADB has been selling a lot of stocks during the coronavirus crisis, causing its proportion in power generation stocks to top other sectors, which led to a force-sell in GULF and BGRIM.
The source stated that the allocation and adjustment is very common and seen by leading funding companies such as Temasek Holdings, a Singaporean holding company.