By SIRIVISH TOOMGUM
The injection of money would come from a proposed new partner, Adelfos Co.
Saithip Montrikul Na Audhaya, chief executive officer of GMM Media of GMM Grammy, said yesterday that injection would go mainly to GMM 25 business expansion.
She added that the company was still working on the next year business plan.
The channel’s current core audience is younger Bangkok viewers aged 15 to 34. Next year, the company will add more TV drama and variety content and tap more viewers in the provinces.
Adelfos Co, the investment firm owned by the family of the tycoon Charoen Sirivadhanabhakdi, has agreed to acquire a 50 per cent share interest in GMM Channel Trading by purchasing newly issued shares worth around Bt1 billion.
Saithip said that GMM Channel Trading’s current management team would still be responsible for running the company’s business after the entry of the new partner. The entry of Adelfos demonstrates the partner’s confidence in GMM’s growth potential, she said.
Representatives of Adelfos will also sit on the board of GMM Channel Trading according to its shareholding ratio.
Thapana and Panot Sirivadhanab-hakdi, sons of billionaire Charoen, are the majority shareholders of Adelfos.
GMM Grammy owns 100 per cent of GMM Channel Trading. The latter’s current business comprises a GMM 25 standard-definition digital TV channel.
Last week, GMM Grammy filed with the Stock Exchange of Thailand its execution of a share subscription agreement between the company and Adelfos.
The agreement is for newly issued ordinary shares in GMM Channel Trading Co Ltd distributed to both GMM Grammy and Adelfos as part of GMM Channel Trading’s registered capital increase.
After the completion of the increase in registered capital of GMM Channel Trading, GMM Grammy and Adelfos will each hold shares representing 50 percent of the registered capital in GMM Channel Trading.
GMM Channel Trading will also restructure its business group as specified in the agreement.
The restructure is expected to be finished in the fourth quarter of this year, said GMM Grammy’s chief financial officer Karnsuda Sansuthi.
After the restructure, the businesses under GMM Channel Trading will be mainly composed of GMM 25 digital TV channel, GMM Media, content provider GMM TV, Atime Media, and Atime Traveler.