Investors are advised to avoid Dusit Thani (DUSIT) as issues within the listed hospitality group persist following a shareholders meeting this week that blocked the reappointment of four directors, raising concerns about internal conflicts among major shareholders.
In a filing to the Stock Exchange of Thailand, Dusit stated that management announced the decision to not re-elect four directors due to their retirement. The directors in question are Arsa Sarasin, Pranee Phasipol, Pakhawat Kovithvathanaphong, and Somprasong Boonyachai, reducing the board to eight members.
Shares of DUSIT fell as much as 2.7% to 7.20 baht in early trading yesterday, even as the Thai benchmark index rose over 1% to 1,178.24 points, following the US tariff ruling. Last month, more than 75% of shareholders failed to approve the company’s 2024 financial statements.
The next shareholders meeting will address the 2024 results, which remain pending approval. Analysts point out ongoing internal conflicts, particularly with major shareholder Chanut and Children Co., owned by the descendants of the company’s founder, which holds nearly 50% stake.
Company secretary Mantanee Surakarnkul stated that the reduction in directors would not impact management or operations. She added that the company intends to maintain at least one-third independent directors, in accordance with legal requirements, and that the nomination, remuneration, and governance committee will select suitable candidates for future approval.
She also noted that the 2024 financial statements, still awaiting approval, will be presented to the next shareholders’ meeting. An analyst from Yuanta Securities recommends investors steer clear of DUSIT amid the ongoing shareholder dispute.
The insider raised concerns about the potential implications if proposed directors are repeatedly rejected, warning it could negatively affect future business and project development.
Historically, Dusit Thani has posted significant losses—1.01 billion baht in 2019, 945 million in 2020, 501 million in 2021, and 570 million in 2022—with losses narrowing to 237 million baht last year following a tourism rebound. In the first quarter of this year, the company reported a net profit of 48 million baht, representing a 60% decline year-on-year and an 84.6% decrease quarter-on-quarter.
