CP denies links with Sinovac purchases
Group issues statement explaining shareholding structure
The Charoen Pokphand group says it has nothing to do with the purchases of the Covid-19 vaccine made by Sinovac Biotech by the Thai government.
In a rare response to the public, the multinational group controlled by Dhanin Chearavanont, Thailand’s richest man with net worth of $18.1 billion on the 2021 Forbes list, issued a statement on Tuesday, giving details on its link with the Chinese vaccine manufacturer.
The group denies reports that it holds 15% of shares in Sinovac Biotech, which suggests it might have been involved with the government’s decisions to buy at least 6 million shots to date.
“The vaccine purchases were made at the government-to-government level and CP was not involved in any way,” read the statement.
On shareholding, the statement says CP does not hold 15% of shares in Sinovac as reported in media.
“The investor [in Sinovac] is in fact China-based Sino Biopharmaceutical listed on the Hong Kong stock exchange. CP is only a small shareholder in this company.
“The seller of the shares was Sinovac Life Sciences, a subsidiary of Sinovac [Biotech], which sought to mobilise funds to increase the production capacity.”
After the deal, Sino Biopharmaceutical holds shares in Sinovac Life Sciences worth US$515 million, or 15.03% of all shares, according to the statement.
“The deal by Sino Biopharmaceutical has nothing to do with CP, which has no shares or the right to own shares in Sinovac Life Sciences.”
The group stresses that CP is only a small shareholder in Sino Biopharmaceutical, in which it invested through the Hong Kong stock market. It has no management control and capacity to interfere with any decision involving Sinovac.
The group warned that, after the clarification, if it finds distorted information damaging it or causing a misunderstanding, it will be forced to take legal action.