MAI-listed Solution Corner (1998) Plc (SLC) runs the risk of violating rules prohibiting owners of digital TV channels from holding more than 10% of other channels, says the National Broadcasting and Telecommunications Commission (NBTC).
SLC recently bought 12.27% of SET-listed Nation Multimedia Group Plc (NMG), which owns Nation TV and Now TV, through its subsidiary NBC Next Vision Co.
Through its subsidiary Spring News Corporation, SLC owns the Spring News channel.
The SLC-NMG case is similar to that of media mogul Surang Prempree, who withdrew her Chan 25 Co from the digital TV auctions after Channel 7 operator Bangkok Broadcasting and Television (BBTV) insisted on participating. She owns 21% of BBTV.
Yesterday, the NBTC's legal subcommittee chaired by Bowornsak Uwanno concluded the auction rules remained in effect and could be used to scrutinise the shareholders structure of digital TV operators.
Previously, the broadcasting committee was not sure whether the auction rules did remain in effect, as they were designed for use during the bidding process. But some commissioners gave the opinion that the rules should continue even though the auctions have concluded.
The digital TV auction rules stipulated bidders could not hold more than 10% of the shares in other companies joining the bidding. Any company holding more than a 10% stake in another company was considered a case of mutual interest. The limit of a 10% stake in other TV operations is intended to prevent media dominance.
Thawatchai Jittrapanun, a broadcasting commissioner, said the SLC-NMG transaction clearly violated the NBTC's auction rules since both companies owned news channels. The NBTC can use its power to investigate the relationship between SLC and Spring News Corporation.
"In my opinion, SLC should reduce its shareholding in NMG to 10% or below. This would be the best solution for SLC to avoid violation," Mr Thawatchai said.
But SLC chief executive Arak Ratborharn insisted his company would not sell NMG shares, as it wanted to invest in the long term.
The NBTC panel is set to consider the issue further next Monday.
SLC shares closed yesterday on the MAI at nine satang, unchanged, in trade worth 8.3 million baht. NMG closed on the SET at 1.82 baht, down one satang, in trade worth 12.5 million baht.