Dusit Thani faces internal turmoil and financial uncertainty as shareholder approval remains in limbo

Dusit Thani battles internal conflict and shareholder concerns as it seeks to secure financial approval. The company’s future hinges on resolving debt issues and restoring investor confidence.

Hospitality firm Dusit Thani Public Co Ltd (DUSIT) is currently grappling with internal challenges and financial uncertainties, with the company still in the process of finalising its 2024 financial statements.

The issue has escalated after the company failed to gain approval from shareholders during the annual meeting on April 25, 2025, leading to delays in appointing auditors and further concerns about the company’s financial standing.

The company recently announced through the Stock Exchange of Thailand that it will continue with the shareholders' meeting, allowing shareholders to review and approve the 2024 financial statements, along with other related matters, as soon as possible.

Additionally, the company has provided an opportunity for shareholders to propose suitable candidates for the board of directors to replace those whose terms have ended. The deadline for submitting nominations for the upcoming extraordinary shareholder meeting is September 16, 2025. Currently, no nominations have been made for the board’s consideration.Previously, Suphajee Suthumpun, CEO of DUSIT Group, confirmed that the plans are proceeding as scheduled and expressed confidence that the ongoing challenges would be resolved successfully.

She also highlighted the prospects for the Dusit Residences and Dusit Parkside projects, part of the Dusit Central Park development, which have achieved 90% sales, valued at 16 billion baht. These properties are expected to start transferring towards the end of 2025, with significant transfers planned for 2026. These projects are expected to unlock significant value for DUSIT Group, driving substantial growth through anticipated revenue.Looking back at DUSIT’s internal rifts

Initially, outsiders had no knowledge of the turmoil within the renowned family that owns Dusit Thani. It wasn't until February 2025 when Chanin Donavanik, the eldest son of the family, was removed from his position as a director of Chanut and Sons Co Ltd, replaced by new directors from two other families: Pattara Salirathavibhaga and Lalita Thienprasiddhi.

The situation escalated during the April 25 shareholders' meeting when a vote was held to reject the 2024 financial statements, and the appointment of auditors for 2025 was not discussed. This was when investors realised the severity of the situation, which could impact investments if the Q1 2025 financials were not submitted on time.

Ultimately, the company’s board of directors and executives were able to resolve the issues and avoid being flagged for suspension of trading (SP). At the May 28 shareholders’ meeting, the shareholders approved the appointment of the authorised auditors for 2025.

Later, during the June 16 board meeting, Chanin was appointed as the acting chairman, replacing Arsa Sarasin, who stepped down from his directorial position.

Clearly, all the issues need to be resolved quickly, as the road ahead remains challenging, with the company facing a total debt of 10 billion baht, consisting of 2.5 billion baht in bonds maturing in 2026, 1.5 billion baht in perpetual bonds, and an outstanding debt burden of 6 billion baht, with interest payments of approximately 281 million baht awaiting. This situation requires solid credibility.

Ultimately, the focus will remain on Dusit Thani's stance on restoring investor confidence, and whether the company can regain its status as a leading tourism stock, especially considering the ongoing internal turmoil.

(2025/07/18-00:00)