GMM eyes Cable Thai stake

The deal is expected to be announced this month. The CTH board meets today to decide on the share sale.

Thana Thienachariya, chief executive officer of GMM Z, the satellite-TV business of GMM Grammy, yesterday said the company is in talks with CTH.

"We are interested in tying up with CTH as it is our business direction plan to move into cable-TV platforms and television-content business, but we cannot give any more details [about the deal]," he said.

GMM Grammy is also looking to join forces with CTH to win the English Premier League broadcasting licence for Thai TV viewers. Bidding for the rights to air EPL football matches is expected to take place in a few months.

Last month, Wichai jumped into the TV broadcasting arena with Vachara Vacharapol, chief executive officer of Trend VG3, a subsidiary of Vacharapol, which publishes the Thai Rath newspaper.

Wichai spent Bt250 million on acquiring 25 per cent of CTH, which has about 200 cable-TV operator members, while Vachara acquired another 25 per cent on his own behalf.

Another 30 per cent is owned by CTH’s members. CTH is wooing other investors to secure the remaining 20 per cent of its stock.

Wichai, who is chairman of CTH, told The Nation that the company expected to have a new strategic partner later this month, holding 20 per cent of its shares. The company is capitalised at Bt1billion.

Wichai, who is also chairman of Phayathai Hospital Group, said CTH could complement his hospital business and support its expansion into the provinces. He declined to elaborate, however.

CTH’s current revenue is from the provision of cable-TV programmes to its members. Once it finishes a nationwide cable-network installation, income will also be from renting the network to members, as well as from advertising.

The company expects to debut the cable-network rental service next January, pending the recruitment of the new strategic partner. The original schedule was for the debut to take place this August.

This year, CTH will spend Bt5 billion on cable-network roll-out and application development, and a total of Bt20 billion within four years. The company intends to seek a listing in the Stock Exchange of Thailand in 2014.

Overall revenue of Bt1 billion is targeted for next year.

Wichai denied that his entry into the cable-TV arena was politically motivated.

A close friend of Pheu Thai party-list member Somchai Wongsawat, who is another former prime minister, he said that as long as Somchai was on the political stage, he would be looked upon as having politically associations.

Wichai said he would not, however, sever his relationship with Somchai, who would always remain his friend. He added that he never sought to be in the spotlight.