Intouch, Thaicom stocks take big hit after ministry seeks compensation for lost satellite
The stock price of Intouch Holdings (INTUCH) and Thaicom (THCOM) on Tuesday dropped sharply despite the rise in the Stock Exchange of Thailand (SET) Index after the Digital Economy and Society (DES) Ministry claimed compensation of more than Bt7.7 billion for the damage to Thaicom 5 satellite.
In the morning session, the price of INTUCH shares dropped by Bt0.75, or 1.39 per cent, to Bt53.25 per share, while THCOM dropped by Bt0.05, or 0.92 per cent, to Bt5.40 per share.
INTUCH informed the SET on Monday that the DES Ministry had issued a notice, urging the company and THCOM to construct and deliver a new satellite to be used instead of Thaicom 5 satellite by next year. If they cannot deliver, they must pay damages of Bt7.7 billion with an interest rate of 7.5 per cent per year.
Meanwhile, they must pay a fine of Bt4.98 million with an interest rate of 7.5 per cent per annum until the delivery of a new satellite or full payment of damages is completed.
On December 17, 2019, Thaicom 5 experienced technical difficulties, causing limitations in monitoring the status of the satellite. THCOM, in which INTUCH is a major shareholder, performed several unsuccessful attempts to recover the satellite after the anomaly occurred. The satellite manufacturer eventually suggested deorbiting the Thaicom 5 satellite 14 years after its launch in May 2006.
DES Minister Buddhipongse Punnakanta acknowledged that Thaicom 5 satellite is now space debris, so the ministry has to establish a working group for claiming compensation from INTUCH and THCOM.
"As a minister, I have to submit a notice to these private companies to protect the interest of the country," he said.
