JKN Global Media Public Company Limited (JKN) has announced that the company successfully entered into a share purchase agreement with DN Broadcast Company Limited (DN) to take over the latter for broadcasting its content in channel “New 18”.
Following the Board of Directors Meeting No. 3/2021 of JKN, convened on 2 April 2021, resolved to approve an investment in DN, who is licensed to use the frequency spectrum and operate a television business in order to provide digital terrestrial television service of the national business service type in the news and article category via channel “New 18”, by purchasing all ordinary shares from DN’s existing shareholders (who are not connected persons), amounting to 50,000,000 shares, representing 100 percent of the total shares of DN, with the total value of THB 5,000,000, and accepting the transfer of loan and interest repayment claims from the creditors of DN, totaling THB 2,381,869,335.52.
JKN stated that the company must pay consideration for accepting the transfer of such claim at the approximate amount of THB 1,055,000,0001 to the creditors of DN, therefore, the total investment value is approximately THB 1,060,000,000.
On 9 April 2021, JKN successfully entered into a share purchase agreement with the existing shareholders of DN, and related agreements, and received the shares from the existing shareholders of DN as well as the loan and interest repayment claims from the creditors of DN. As such, DN has become a subsidiary of the company.
JKN stated that it will use operating cash flow as the source of funds, with the amount of approximately THB 410 million and will use cash from long term loan from financial institution, at the amount of THB 450 million and payment on installment to the Group of Existing Shareholders of DN, at the amount of THB 200 million, for 3 years, for this Investment.The company expected that payment for the Investment will not affect its liquidity and working capital.
JKN expected benefits from entry into the transaction as follows;
1) The business operations of the company will become more efficient and its competitive capabilities will increase, as the company will be able to increase its channel’s product recognition for consumers.
2) JKN will be able to reduce its advertising costs and publicize its products more, as the company will be able to appropriately manage advertising and public relations.
3) JKN will be able to manage its advertising distribution business more efficiently, as it will have the freedom to customize its channel advertising. This will help create opportunities for the company to receive greater compensation.