The Stock Exchange of Thailand (SET) yesterday lifted the trading suspension for Pace Development Corporation Plc (PACE), but concerns remain whether the Securities and Exchange Commission (SEC) will require the company to amend its financial statement.
Though a notice pending sign on the stock remains, shares of PACE rose 12% to 2.56 baht after opening before closing at 2.18 baht in trade worth 216 million baht.
The SET lifted the suspension following the company's submission of its second-quarter financial report. Its tallied 5.3 billion baht in net profit, up from a net loss of 640.5 million the same period last year. Net profit during the first six months was 4.7 billion baht, up from a net loss of 573 million year-on-year.
The 5.3 billion net profit was attributed to an increased revaluation of the company's subsidiaries, but the auditor did not agree with such revaluation, said an analyst who requested anonymity.
"The SEC could demand the company amend its financial statement as the notice pending sign will remain until it does, or if the company convinces the regulator it does not need to submit an amendment," said an Asia Plus Securities report.
Pace Development Corporation and Sahaviriya Steel Industries Plc were both mentioned in the SET's statement explaining the trade stoppage on Wednesday, stating "as the companies' auditors were unable to reach a conclusion on [their] financial statements ended June 30, 2017, the SEC may require [these] companies [to] amend their financial statements."
Pace's filing clarification to the SET said the auditor could not reach a conclusion from an independent financial advisory's report on the estimation of income for MahaNakhon Tower's observation deck because construction is not finished.
Pace is a high-end property developer, with notable projects such as MahaNakhon Tower along with residential projects like MahaSamutr, a luxury resort project in Hua Hin, and luxury condo Nimit Langsuan, together worth a combined 20 billion baht.
The company also bought one of the world's most iconic gourmet food brands, Dean & DeLuca, as well as its global business and assets last November for US$140 million.
Separately, Inter Far East Energy Corporation Plc (IFEC) informed the SET its debenture holders' meeting held on Aug 8 was fruitful as a debt restructuring plan was approved.
"There were 332 debenture holders attending, representing 1,265,900 debentures held, equal to 42.2% of issued debentures," said the company.
The debt restructuring plan will begin on Jan 30, 2018, dividing into three lots. For the defaulted bills of exchange (B/E) valued at 2.13 billion baht, the company will issue five-year debentures for debt restructuring, with 7.5% interest and interest payments every three months.
For B/Es not due to be paid worth 1.086 billion baht, IFEC will make a 60% debt repayment, then issue three-year debentures worth 434 million baht, with 7.5% interest.
