Merger of CTH and GMM Grammy pay TV businesses
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CTH Group and GMM Grammy today announced the merger of their pay TV businesses which reach about 5 million households.
Competition in the industry leads to the synergy.
Under the partnership, both parties agree to combine all operations - marketing activities, contents, broadcasting networks, and customers.
It was announced yesterday that GMM Grammy's subsidiary Z Trading will acquire 30 million shares of CTH for Bt1 billion. GMM B's 38.66 million common shares, at the same value, would be sold to CTH LCO.
"The current satellite pay TV business is a highly competitive business which requires high investment. The nature of business of CTH and GMM B can support each other. The investment in the shares of CTH by the company’s subsidiary will reduce costs and competition in the business of both companies. As a result, the financial status and operating results of the group shall be improved," GMM Grammy announced.
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