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Thai Union’s Financial Director Resigns And Cashes Shares

Following disappointing financial results, eleven and a half million dollar shareholder, Chan Tin King has resigned from his position as Financial Director at Thai Union Frozen Products (TUF), and cashed  his 7,436,331 shares. On the day his resignation was announced, TUF share price recorded 51.75 Thai Baht, equivalent to USD 1.60 a share. Since this morning’s announcement of his resignation, share price has dropped 2.82 percent; indicating that markets are not seeing his departure and share transaction as a positive sign.
Chan’s stepping down from the position at the world’s largest canned tuna producer follows poor financial performance for Thai Union in the first half of this year. Net profit dramatically decreased by 58.1 percent year-on-year to USD 33.046 million.
Less than a year ago, in September 2012, Thai Union share value reached record highs just over THB 75, or approximately USD 2.33 a share, however from October 2012 onwards the stock has been in decline.
Stock Chart For Thai Union Frozen Products PCL
Source: Bloomberg

TUF net profit also fell a considerable 46.8 percent from the first quarter of 2013 to the second quarter (Q2). The net profit for Q2 saw Thai Union experience a 64.2 percent fall this year when compared to the same period in 2012.
Despite sales increasing of six percent from 2011 to 2012, an eight percent drop in net profit was recorded for the company at the end of last year. It seems this trend is continuing much stronger throughout 2013.

Until a successor for Mr. Chan Tin King is selected there are now 14 members on the company’s board of directors. Thai Union said that the nomination and remuneration committee will find suitable candidates to be considered for the position.

Thai Union explained that no reason was given for Chan’s decision to resign, which was accepted by Chairman, Kraisorn Chansiri and Executive Director, Chuan Tangchansiri.

According to Thai Union, its poor performance for the first half of this year is based on unstable tuna prices and early mortality syndrome (EMS) in shrimp.