The share price of Italian-Thai Development Public Company Limited (ITD) dropped ฿0.04/share or 3.51% to ฿1.10/share as of 10:55 local time in Thailand on Wednesday, January 13, 2021.
Yesterday, ITD announced that the company was preparing to contradict with Dawei Special Economic Zone Management Committee in Myanmar after the latter terminated ITD’s projects.
In accordance with ITD and Consortium Partners through its 5 companies registered in the Republic of the Union of Myanmar (Project Companies) being granted the concessions for the Dawei Special Economic Zone Initial Phase from the Dawei Special Economic Zone Management Committee (DSEZ MC) for the development of an industrial estate of 27 square kilometers along with the necessary supporting infrastructure and utilities. Altogether comprising 7 Concession Agreements, 6 of which were signed on the 5th August 2015 and an additional Concession Agreement signed on the 29th March 2016.
ITD stated that on the 30th December 2020, the 5 Project Companies received a notice of termination for the 7 Concession Agreements from the DSEZ MC due to the DSEZ MC alleging that the Project Companies failed to make concession fee payments and cannot comply with certain conditions precedent prior to commencing the operations under the Concession Agreements.
In this regard, the Board of Directors Meeting No. 4/1/2021 held on 11th January 2021 have considered proceeding with the aforementioned allegations, and have resolved for ITD’s legal advisor to immediately proceed with preparing a letter of clarification and rebuttal to the aforementioned allegations of the DSEZ MC.