U Has No Plans for NMG’s Capital Increase, Saying Different Business Directions

In the Board of Directors’ Meeting on October 4, 2019 of Nation Multimedia Group Public Company Limited (NMG), the Board of Directors had the resolution to purpose the capital increase plan to the Extraordinary General Meeting of Shareholders which will be held on November 18, 2019.

NMG planned to increase its registered capital of 7,186,747,639.18 baht from the existing registered capital of 2,156,024,291.86 baht to 9,342,771,931.04 baht by issuing ordinary shares of NMG in the number of 13,559,901,206 shares at the par value of ฿0.53/share.

The newly issued ordinary shares will be proposed to the existing shareholders of the NMG at proportionate to their respective shareholdings (Rights offering) with the allocation ratio of 3 existing shares to 10 newly issued ordinary shares at the offering price at ฿0.60/share. Total value is not exceeding 813,594,072.36 baht. The offering period is determined to be from 12 to December 18, 2019 (totaling 5 business days).

 

As the current No.1 major shareholder of NMG with a portion of 9.99% of voting rights, U City Public Company Limited (U) has stated that the company does not plan to purchase the newly issued shares from NMG. On the other hand, U plans to lower the portion held in NMG at the reasonable price.

U’s CEO Piyaporn Phanachet has stated that the company sees NMG’s current business direction does not go in the same way as U’s investment plan. In the future, the company would optimize the on-hand cash for its highest efficiency. The amount would be used to invest in overseas markets or debt repayment in foreign currency.