CPAXT Gains 2% after Issuing Statement to Bring Back Confidence over Illegal Pork

CP Axtra Public Company Limited (SET: CPAXT) published its clarification statement via the Stock Exchange of Thailand after being involved in the issue related to illegal importation of frozen pork.

The clarification statement stated that the news has spreaded scandalous misunderstandings to the public and investors, prompting the company to come out and affirm its principle of non-involvement in illegal importation and said that it is cooperating with the government officials to investigate the subject. CPAXT added that it follows a rigorous process, ensuring that documents from pertinent government agencies are meticulously reviewed at each stage.

The share price of CP AXTRA Public Company Limited (SET: CPAXT) had started to plummet on Tuesday, which dropped by 2.68% at the end of evening session, and the negative sentiment continued as the stock slumped by 6.42% on Wednesday. A sharp plunge was due to the report that special investigators had found illegal pork being bought by the company. However, CPAXT received a positive sentiment on Thursday morning as it climbed by 1.96% at 11.08 a.m. (Bangkok time), after the company had issued a statement clarifying the situation via the Stock Exchange of Thailand.

The main subject of the incident was whether the buyer of illegal pigs (CPAXT) will also be prosecuted or not since the Department of Special Investigation (DSI) had previously affirmed that the buyer of the said product will also be prosecuted as the importer. It has not been concluded, in this case, due to the necessity of further investigation.

In addition, CPAXT added that all Makro branches sell high-quality products and comply with the legal standards. Nevertheless, the company does not endorse any unlawful activities and strictly adheres to the principles of good corporate governance. Furthermore, CPAXT said it is committed to fully cooperating with the government agencies in their ongoing investigation. In this regard, the aforesaid transaction has no impact on the company’s ordinary business operation.