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Published on December 7, 2007

The clarification must be made by next Tuesday, the Stock Exchange of Thailand (SET) said yesterday.

EWC recently agreed to buy 1.2 billion shares in Enersol worth Bt78.55 million, to take its stake in the energy producer up to 80 per cent.

The SET asked the company to explain why it made an additional payment of Bt18.55 million for the shares when the Legal Execution Department had already given it notice to sequester transfer rights on the sale of Enersol shares amounting to Bt20 million.

"After receiving the notice from the Legal Execution Department, please explain why EWC decided to increase the price of Enersol's shares by Bt17 per share, from Bt55 to Bt72 each. Was this related to the amount specified by the Legal Execution Department, or not?" the SET said.

The bourse also questioned EWC's payment of Bt12.76 million out of the additional Bt18.55 million for Enersol's shares to Ua Withya - EWC's own 90.98-per-cent subsidiary - instead of to Picnic, Enersol's parent company.

The exchange also asked why EWC had made the Bt12.76-million payment to Ua Withya, but failed to pay the rest of the additional Bt18.55 million to the Legal Execution Department, when both payments were based on the same transaction.

The SET also asked it to explain why it had recorded a further Bt7-millionallowance for impairment of Enersol in the third quarter when due diligence and the purchasing transaction were also done in the same quarter.

Regarding EWC's withdrawal of a lawsuit against Netactive, the exchange asked it to explain this and the launch of a new lawsuit and to specify the advantages and disadvantages of the procedure.

The Nation