Nation Multimedia Group Company Limited (NMG) has approved to propose to the shareholders’ meeting to consider approving Spring 26 Company Limited (Bangkok Business Broadcasting Company Limited), a subsidiary in which NMG holds 149,900,000 ordinary shares with a par value of THB10 per share or 99.9333% of total ordinary shares sold (Spring), which is the holder of a license to use the spectrum to provide digital terrestrial television services as a national business service type in a standard definition category, named as SPRING 26 Channel (formerly known as NOW26 Channel), effective from 25 April 2014 to 24 April 2029 (License), to return the License (Transaction of returning Spring’s License).
As Spring submitted the request for the Licence return to the office of the National Broadcasting and Telecommunications Commission (NBTC) on 10 May 2019, NBTC delivered the notification letter, dated 27 June 2019, regarding the result of consideration of the request for the return of the license to use the spectrum to provide digital terrestrial television services, stating an approval to return and discontinue the License, determining the service termination date on 16 August 2019 at 00.01 a.m. onwards.
In addition, NBTC also approved the determination of remedial measures that Spring shall publicize remedial measures for service users as proposed by Spring for not less than 45 days prior to the date of service termination.
In this regard, Spring shall receive compensation as a result of the License return in the amount of THB890.83 million within 60 days from the date of service termination. However, Spring has not completely paid the fourth installment of license fee according to the Notification of NBTC on the Bid for the Spectrum in the amount of Baht 215.07 million (including VAT), thus compensation as a result of the License return shall be deducted by the outstanding license fees. The residual compensation, after a deduction of the license fee, equals to THB675.76 million.
Compensation as a result of this request for the License return shall reduce debt burdens of NMG; enabling it to repay debts to creditors and continuously run the businesses. At present, NMG has liabilities with interest with financial institutions and short-term loans in the approximate amount Enclosure Page 10 of THB918 million as of 9 May 2019. NMG shall spend the compensation on repaying accrued network payables, trade payables, short-term liabilities, and long-term secured liabilities with financial institutions and also use it as working capital.
The request for the License return will enable NMG to shut down the business that has always suffered losses, which has not yet been able to speculate profitability and will not affect the core businesses of the group of the Company. NMG still has Nation Broadcasting Corporation Public Company Limited (NBC), a subsidiary of NMG, which has operated its television channel in fully integrated functions, no matter what producing, providing TV programs, and selling airtime in the field of news,entertainment, and new media and NBC Next Vision Company Limited, a subsidiary of NBC, which has been licensed to operate a digital television business in the category of news and content (SD) as its expertise under the name of Nation TV (Channel 22).
Additionally, the Extraordinary General Meeting of Shareholders No. 1/2019 to be held on 6 September 2019 shall resolve the approval of the entering into the transaction on the License return.