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Baht 20 million or more than 0.3% but less than 3% of the net
tangible asset value (whichever is higher) requires prior approval

of the board of directors and disclosure to the SET. On the

other hand, the same type of transaction with the transaction
value of Baht 20 million or more or 3% or more of the net

tangible asset value (whichever is higher) requires not only prior
approval of the board of directors and disclosure to the SET, but

(38)
also prior approval of the shareholdersû meeting.

To ensure compliance with the regulations of the SEC and the

SET including regulations on related-party transaction and directorsû
conflict of interest, a listed company is required to appoint at

least three audit committees, who shall be independent directors.

3.4 Exit from the Portfolio Company

Exiting is an essential step of private equity investment.
It requires determination of the exit strategies and identification
(39)
of timing for divestment. Although the most common exit
strategies are trade sales and IPO, there are other types of exit

strategies, some of which may result in partial exit from the
(40)
portfolio company.

(38)
Appendix of the SET Notification Re: Disclosure of Information and Other Acts of Listed
Companies Concerning the Related-party Transactions 2003.
(39)
See MARK BROERE, DECISION-MAKING IN PRIVATE EQUITY FIRMS: AN EMPIRICAL STUDY OF DETERMINANTS
AND RULES (2014) 115-117 (explaining that based on empirical studies, private equity firms
exit from underperforming portfolio companies faster than those that perform well).
(40)
See generally STEFAN POVALY, PRIVATE EQUITY EXITS: DIVESTMENT PROCESS MANAGEMENT FOR
LEVERAGED BUYOUTS 119-126 (2007); STEFEANO CASELLI, PRIVATE EQUITY AND VENTURE CAPITAL IN
EUROPE: MARKETS, TECHNIQUES, AND DEALS 39 (2010).

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