Gunkul Engineering Public Company Limited (SET: GUNKUL) has released a statement in response to news circulated in the media that led to its share price plunging over 15%.
The company admitted that fact regarding the report that the Central Administrative Court revoked the company’s title deed in Huai Bong, Dan Khun Thot District, Nakhon Ratchasima, Thailand, totaling 1,747 rai (approx 0.431 acre). However, GUNKUL noted that the decision of the Central Administrative Court is not final, and the company will appeal the decision on March 10, 2023.
Prior to purchasing the said title deeds, the Company conducted the due diligence on processes of issuing the title deeds and found out that the issurance of the said title deeds was correct in accordance with the laws. The Company has the opinion that the issuance of the land title deeds of all 32 plots was in accordance with the relevant laws.
The Project will therefore exercise the right to appeal the verdict of the Nakhon Ratchasima Administrative Court to the Supreme Administrative Court to seek a final ruling on the facts and legal articles detailed in the appeal. The Project is currently operating its electricity generating business as usual without any impact to its operations in any way
Miss Sopacha Dhumrongpiyawut, Director and Chairman of the Executive Committee of GUNKUL, stated that the Wayu Wind Project with a total capacity of 50MW operates under the said land. However, the damage to the operation would be attributed to around 20MW as the disputed land did not cover all of the project.
Upon researching, the project is also a joint venture between GUNKUL’s subsidiary that operates that project and Gulf Energy Development Public Company Limited (SET: GULF) by holding 50% each, which could be the reason for around half the damage that GUNKUL received.