Duty-free operator King Power Group yesterday acquired a 9% stake in SET-listed RS Plc, a leading music and digital TV company, for 940 million baht.
RS said the group purchased 94 million shares, of which 79 million shares were from the company's chief executive Surachai Chetchotisak and the other 15 million from his son Chet, at 10 baht each.
Chief operating officer of RS, Pornpan Techarungchaikul, said the management structure and executives would remain unchanged with the entry of the new major shareholder.
"The deal was done due mainly to the close relationship between Mr Surachai and the King Power Group's chairman Vichai Srivaddhanaprabha," said Ms Pornpan.
The Chetchotisak family remains RS' largest shareholder.
King Power's entry will help strengthen the entertainment company's funding as RS seeks to diversify into other businesses in the near future, said Ms Pornpan. In the meantime, she said, King Power had clearly set its position as a "passive investor" who could see the potential to gain returns from its investment in RS.
"They [King Power] foresee the potential of RS in expanding into other businesses from our strong position in the entertainment business, so if they want to invest in this business, we are their first choice," added Ms Pornpan.
RS started as a music recording company before expanding into satellite TV broadcasting, operating Channel 8 on digital free TV and four other channels on satellite TV.
The company earned 473 million baht from Channel 8, the only operator to make a profit in the first year among all digital TV operators.
RS also held the media rights for the World Cup Tournament in 2010 and 2014, as well as the rights to the live broadcasts of Spanish La Liga football tournament for the 2012-15 seasons, which expired recently.
King Power also has invested in the sports business — in 2010 it acquired the 130-year-old English Leicester City football club.
RS shares closed on the SET yesterday at 11.90 baht, up 50 satang, in heavy trade worth 1.19 billion baht.