BANGKOK: Dusit Thani, a cornerstone of Thailand's hospitality industry for 76 years, is facing a severe internal crisis as a power struggle between the three heirs of its founder, Thanpuying Chanut Piyaoui, intensifies.
The conflict, pitting acting chairman Chanin Donavanik (pic) against his two sisters, Sinee Thienprasiddhi and Sunong Salirathavibhaga, has cast a shadow over the company's future and its multi-billion-baht "Dusit Central Park" project.
The family dispute has spilled into the boardroom, triggering concerns among investors and prompting an extraordinary general meeting of shareholders scheduled for Sept 26.
The meeting will address key issues, including the approval of financial statements, a proposed change in the board's structure, and the potential removal and appointment of new directors.
Suphajee Suthumpun, the Group CEO of Dusit Thani, confirmed that the upcoming meeting is a routine process under corporate governance principles, allowing shareholders to participate in crucial decisions.
"I would like to reaffirm that no changes have occurred. The management team and employees continue to perform their duties to the best of their abilities until the shareholder meeting passes a resolution," Suphajee stated.
She expressed confidence that despite any potential board changes, the company is on the cusp of a new and highly profitable chapter. The Dusit Central Park mixed-use development, a joint venture with Central Pattana, is set to generate unprecedented revenue and profits in 2026.
This is thanks to the impending transfer of ownership for the residential units, a key component of the 46 billion baht project.
In a press conference on Wednesday (Aug 27), Chanin Donavanik, acting chairman and son of the founder, broke his silence on the family conflict.
He revealed that Chanut and Children Co. Ltd., the major shareholder, had proposed his removal from the board to make way for individuals with external affiliations. He alleges this is an attempt to give outsiders control of the family business.
"They used their power through the Chanut and Children company to disapprove financial statements, even though they had no issues," Chanin claimed.
"Most recently, they've tried to remove me from the board to appoint people linked to an outside party to seize management control. This not only harms Dusit Thani but also paves the way for non-family members to take over the business my family built."
He voiced concerns over the proposed new directors, noting that some have direct ties to the Central Group.
According to Chanin, this could allow an external party to control the company without the need for an existing director's signature.
He also claims there have been attempts to split the shares of Chanut and Children Co. Ltd. to sell them to outsiders, despite the company's regulations prohibiting the sale of shares to non-family members.
In response to Chanin's remarks, Central Pattana Pcl. issued a statement to clarify its position, refuting what it called "misinformation."
Central Pattana confirmed its long-standing business partnership with Dusit Thani on the Dusit Central Park project since 2017, a collaboration with an investment of over 20 billion baht. The company stated that it holds a 17.09% stake in Dusit Thani, acquired in 2018.
"Central Pattana has been offered the opportunity to nominate a representative to be appointed as a director by the shareholders' meeting," the statement read.
"This is in line with the usual practice of participating in proportion to our shareholding to protect our investment. We have no authority to control Dusit whatsoever."
The statement also emphasised that Central Pattana has no involvement in the decisions made by Chanut and Children Co Ltd, which manages Dusit Thani.
Central Pattana highlighted its commitment to good corporate governance and its strict policies on managing conflicts of interest with all its business partners.
Chanin expressed his apprehension regarding potential conflicts of interest, citing the overlap in business between Dusit Thani and Central Group in the hospitality, property development, and food sectors.
He claimed that Central Group had previously acquired a 22.5% stake in Dusit Thani without informing them, leading to a request for them to sell half of the shares and not appoint a director due to the potential for a conflict of interest.
"I have learned from multiple sources that Central Group and Chanut and Children Co. Ltd., under the management of my two sisters, have held several discussions to find a way to increase their stake," he said.
"I believe the purpose of these discussions might be to seize control of Dusit Thani. I find this action to be improper."
Chanin fears that the ongoing uncertainty will harm the business's continuity and the Dusit Residences project.
He pointed out that over 92% of the residential units have been sold based on trust in the Dusit Thani brand. The current instability could undermine buyer confidence and affect the scheduled unit transfers.
"I am speaking out because this is not a personal matter," Chanin concluded. "It's an attempt at an unjust takeover. It's about the future of a brand we've built for over 76 years." - The Nation/ANN
