The Prasarttong-Osoth family has acquired 50% of One Enterprise Co, a digital TV subsidiary of SET-listed GMM Grammy, according to a statement by GMM Grammy to the Stock Exchange of Thailand yesterday.
Grammy plans to raise registered capital at its subsidiary, One Enterprise, by an additional 1.91 billion baht to allow the entry of Prananporn Co.
After the share purchase, Prananporn, led by major shareholder Poramaporn Prasarttong-Osoth, daughter of Bangkok Airways owner Prasert Prasarttong-Osoth, will hold a 50% stake in One Enterprise.
Mr Prasert is also the founder and a major shareholder in the country's largest hospital operator, Bangkok Dusit Medical Services, which recently spent 10.8 billion baht to buy Nai Lert Park hotel in a central Bangkok.
Grammy's board on Wednesday approved a plan for One Enterprise to issue 19.05 million shares with a par value of 100 baht each to raise its registered capital to 3.81 billion baht. The newly issued shares will be offered in two tranches on Feb 28 and May 31, 2017.
One Enterprise is a joint venture between Grammy and Takonkiet Viravan, holding 51% and 49% stakes, respectively. After the capital increase, Grammy will see its shareholding in One Enterprise diluted to 25.5%, while Mr Takonkiet will have 24.5%.
One Enterprise is the licence holder and operator of One Channel, a high-definition digital TV channel.
Mr Takonkiet, chief executive of One Enterprise, said the company is glad to have Prananporn on board as a major shareholder.
"Prananporn is an investment company and it sees One Channel's growth potential and management efficiency," he said. "Its entry will not change the management structure at One Enterprise."
But analysts said Grammy has to clarify to the regulator that Prananporn has no direct connections with the major shareholder of Bangkok Media and Broadcasting Co, which operates PPTV, a high-definition channel. PPTV is also owned by the Prasarttong-Osoth family.
Thawatchai Jittrapanun, a commissioner at the National Broadcasting and Telecommunications Commission (NBTC), said the regulator will inspect the eligibility of the deal between Grammy and Prananporn.
Both firms must show that the deal is transparent and does not violate the NBTC's rules.
Under the rules, digital TV operators cannot hold two high-definition channels at the same time. One and PPTV channels are in the HD category.
"I believe the Prasarttong-Osoth family must have done their homework before announcing the deal with One Enterprise," said Mr Thawatchai. "But we'll closely monitor the deal and decide whether it is fine or not."
GRAMMY shares closed yesterday on the SET at 9.90 baht, down 20 satang, in trade worth 5.17 million baht.