The share price of RS Public Company Limited (SET: RS) dropped nearly 3% yesterday after the report that Ziga Innovation Public Company Limited (SET: ZIGA) had lent 104 million baht to RS’ Chief Executive Officer Surachai Chetchotisak.
RS stocks saw no change in the morning session on Thursday, trading at THB 14.30 per share.
ZIGA reported in the evening on September 5, 2023, that its Board of Directors approved the company to provide financial assistance to unrelated persons in the amount of 104,000,000 baht to Mr. Surachai Chetchotisak, the Chairman and CEO of RS.
Mr. Chetchotisak put Gift Infinite Public Company Limited (SET: GIFT) as collateral for the loan agreement, totaling 16,000,000 shares in the amount of 104,000,000 baht.
ZIGA noted that it will receive interest of 15% from the loan, which is higher than the interest rate on deposits with financial institutions and general bonds.
As movements by the CEO are sometimes assumed by the market to link to the company itself, the agreement for loan led to investors believing that it will have no impact on RS due to 1) it is a personal loan and 2) the size of loan which is considered a small size compared to RS for anything significant.