MAI-listed News Network Corporation Plc, formerly known as Solution Corner (1998) or SLC, is in talks to pool synergy with other media and communications companies after failing to do so with SET-listed Nation Multimedia Group Plc (NMG).
However, the company, which owns the Spring News digital TV channel, insists it will not sell its 12.27% stake in NMG.
Chai: 'No links' with Thaksin Shinawatra
Its NMG investment sparked a dispute when NMG, headed by chairman Suthichai Yoon, claimed its editorial independence could be affected. NMG has the digital channels Nation TV and Now Channel.
"We're still sticking to our plan to become an integrated media and communications company. We won't sell our NMG shares even though we've had many offers to buy back the shares at a high price," said Watanya Wongopasi, a director of News Network.
News Network regards its NMG stake as a long-term investment in the hope it will be able to build a partnership to become a full-service communications firm and expand throughout Asean.
Its capital increase programme raised 2.4 billion baht last year and was used to expand its digital TV business and acquire a stake in NMG.
"It's better for News Network to have a media network that will help to reduce risks for running a digital TV business when the market is highly competitive," Ms Watanya said.
NMG said News Network's share acquisition was not carried out in a good manner, claiming it was funded with grey capital linked to politicians.
Reports by media outlets under NMG accused veteran investor Chai Bunnag, who used to be a major shareholder in News Network, of being the man behind the acquisition.
"It's unfair to me. I have no shares in News any more," Mr Chai said.
He insisted he was never involved with the management of News Network or other subsidiaries such as Polaris Capital Plc and Aqua Corporation Plc as NMG has accused.
Moreover, he said he had no links with ousted prime minister Thaksin Shinawatra, the politician NMG referred to as the owner of the grey money.
Mr Chai admitted he accompanied Ms Watanya, his wife, to meet NMG chairman Mr Suthichai at the Dusit Princess Hotel on Dec 15.
The meeting was held to make friends and inform Mr Suthichai about its investment, he said.
A gentleman's agreement included a clause that SLC must not hold more than a 15% stake in NMG.
NMG's annual general shareholders' meeting is set to be held tomorrow.
NEWS shares closed yesterday on the MAI at 40 satang, unchanged, in trade worth 20.8 million baht.
NMG shares closed on the SET at 1.97 baht, down five satang, in trade worth 9.03 million baht.