Spring News

TV Direct Public Company Limited (TVD) has notified the Stock Exchange of Thailand (SET) of its Board of Directors’ Meeting, held on September 21, 2018 has resolved the approval of proposing the Extraordinary General Meeting of Shareholders to consider and approve TVD to purchase the shares of Springnews Television Co., Ltd. (SPTV) from Springnews Corporation Co., Ltd. (SPC), which is a subsidy company of News Network Corporation Public Company Limited (NEWS), in the proportion of not less than 90.1 percent of total issued shares and fully paid-up of SPTV without any encumbrance and eviction. SPTV is a limited company who carries on the business of television station and all kind of mass media and has been granted the license of permission to use frequencies and operate digital terrestrial television in the category of news and information channel (“TV License”) by Springnews Channel 19 under the control of Office of the National Broadcasting and Telecommunications Commission, and approve TVD to engage SPC to produce news and information program throughout the period of TV License (The license will be expired on April 24, 2029). TVD shall pay the price of SPTV’s shares amounting to ฿7,655,000 per month throughout the period of TV License, totally amounting to ฿949,220,000. The service fee for production of news and information program amounting to ฿1,055,000 per month and grant time sharing for sale of advertisement in the proportion of 30 percent of news and information produced by SPC with having the value approximately ฿540,000 per month, totally ฿1,595,000 per month. Moreover, TVD has appointed OptAsia Capital Co., Ltd being an Independence Financial Advisor of TVD to provide their opinion regarding this entering into the transaction, and elected Mr. Lertpong Yongthanarat being a new director replacing a resigned director, Mr. Pisut Chalakornkul, which is effective on September 21, 2018 onwards. As for the benefits from this purchase, TVD will be entitled to operate Springnews Channel which has been granted the permission to use frequencies and operate television station for providing digital terrestrial television in the category of news and information channel. Meanwhile, TVD will be able to manage and chose the airtime for advertising of products of TVD and subsidiary direct to the target group of customers more efficiency. The risk from airtime rental for sale of products of TVD through other channels will be reduced, as well as the costs reduction. Such transaction shall support the strength and capability of TVD and subsidiary to compete other competitors which shall increase sale volume of TVD and subsidiary and elevate overall turnovers of TVD. Also, this will allow TVD and its subsidiary to jointly use any resources such as personnel, knowledge and expertise to support each other which shall increase the efficiency of overall performance.