SET-listed Nation Multimedia Group Plc (NMG) will sell its shares in digital TV channel Now26, a publishing plant, logistics and real estate for a total of 1.4 billion baht as part of its business restructuring plan.
NMG reported yesterday to the Stock Exchange of Thailand the company's board of directors met on Tuesday, approving the disposal of assets for its restructuring.
The assets comprise Nation U (NU), which owns a university licence and operates Nation University; Bangkok Business Broadcasting (BBB), the operator of Now 26 digital TV channel; WPS (Thailand), which provides printing services; NML, a logistics provider; and land and buildings.
The assets are to be sold via an auction, which is expected over the next six months, possibly in March or April 2018.
The restructuring is to handle the sea change in the news and printed media industries, keeping its core business of media and content, in which it has expertise, said NMG.
The disposal of NU, BBB, WPS and NML should not affect the future business operations of the group because none are engaged in media and content production, it said.
Ridding its BBB investment will lessen its financial burden, increasing liquidity and cash flow, said the media company.
A lower financial burden will allow the company to focus on its core business and strengthen its position for future business expansion.
After it disposes of its subsidiaries, Nation Multimedia will prioritise its print media newspapers (Bangkok Biz, The Nation and Kom Chad Luek), activity and event organising, content production, TV business (Nation 22 news channel on digital TV), and the businesses of NINE Group.
Proceeds from the asset disposal will be used largely to repay debts, reduce interest payments and as revolving capital, said NMG. Other uses will be operating expenses and investment.
The board said the auction is appropriate, beneficial to the company, and in accordance with its strategy to be flexible and focus on its areas of experience and expertise.
In September, Hong Kong-based Chit Lom Ltd acquired a 9.64% stake in NMG from Digital Sky Holdings Ltd for an undisclosed amount.
NMG posted a net loss of 1.1 billion baht on revenue of 2.18 billion last year, compared with 35.5 million baht in net profit and 3.16 billion in revenue in 2015.
NMG shares closed yesterday on the SET at 50 satang, up four satang, in trade worth 9.17 million baht.