Thepchai questions SLC's real intent in buying up big stake in Nation Group

[Lite Beer]

Thepchai questions SLC's real intent in buying up big stake in Nation Group
The Nation

Nation Multimedia Group editor-in-chief Thepchai Yong, second from right, together with Supinya Klangnarong, a member of the broadcasting committee of National Broadcasting and Telecommunications Commission, third from right

BANGKOK: -- Nation Multimedia Group editor-in-chief Thepchai Yong has questioned the real intention of Solution Corner (SLC) and affiliates in buying up a large amount of NMG shares.

He said NMG executives offered friendly talks with SLC on reducing the size of its shareholding in the media company, so that NMG can maintain its independence.

Thepchai was commenting during the TV talk-show "Tob Jod" (Answering Questions), broadcast on Thai PBS on Thursday night. He said NMG executives doubted the real intention behind why SLC had bought a major shareholding in NMG.

"Of course, Nation is a public company listed on the stock market. Investors have their full right to invest but unlike other businesses, the media industry has its own norm, philosophy, ethics and practice for public interest, which investors have to understand," he said.

Some of the people connected to SLC have been investigated on charges of stock manipulation, Thepchai noted.

"If they can buy into NMG in this manner, they can also do the same with any other media businesses," he said, adding "but the media business is about credibility - and credibility is something that money cannot buy."

Thepchai said a reduction in SLC's shareholding to a "proper level" in NMG could show the public that the group merely wants a business investment, with no intention to intervene in the company's management.

SLC has informed the market that it holds 12.27 per cent of shares in NMG but Thepchai noted that SLC had admitted during an informal talk with executives of NMG recently they have a stake of more than 30 per cent all together.

"They are trying to circumvent requirements to do a compulsory tender offer [to takeover NMG] since it would require huge amounts of money," Thepchai said.

This news had given rise to concern among Nation executives that the real intention is much more than a normal business transaction, he said.

Supinya Klangnarong, a member of the National Broadcasting and Telecommunications Commission (NBTC)'s broadcasting committee, said the software provider SLC should be deemed as having violated the rule of having a share cross-holding of more than 10 per cent.

"I personally regard the stake-holding as breaching the NBTC rule because SLC already has 100 per cent in another digital television station, which is Spring News," she said. "But the NBTC has not yet made any decision on this matter as some members still have different opinions on it," she said.

The rule of not having share cross-holdings applied when bids were taken for digital-TV licences. SLC itself did not apply for a digital TV licence, but its subsidiary Spring News Television did.

An NBTC subcommittee on legal affairs is studying the case and will make a decision on the matter soon, Supinya said on the same TV programme.

National Reform Council (NRC) member Wasan Paileeklee said the council's media reform committee has also taken an interest in the NMG-SLC case - as a matter that reforms need to be address. He said the main principle was that the media should be free from state or capitalist intervention.

"We don't want to see a monopoly in the media industry in order to maintain freedom of expression", he explained during the programme.

SLC chief executive officer Arak Ratboriharn told Thai PBS separately that purchase of the stake in NMG was a pure business investment as his group saw a good investment prospect in the Nation Group.

"We understand and accept the principle of editorial independence. We also invested in Spring News TV but allow the channel its independence," he said.

"We own Spring News but never use the media to clarify our business deals, particularly for this case (with the Nation Group) as we deemed that it's personal interest, not public interest," he said.

Asked if SLC was interested in reducing its share stake in the Nation Group to end the business conflict, Arak said his group was open for business negotiation, for long-term interest.

"We are doing business and might consider if anybody can offer a 'good price' but basically we bought into Nation Group, as we saw a good business prospect in the long run," he said.

Source: http://www.nationmultimedia.com/national/Thepchai-questions-SLCs-real-intent-in-buying-up-b-30251641.html

-- The Nation 2015-01-10

[rickirs]

"We don't want to see a monopoly in the media industry in order to maintain freedom of expression"

But martial law and a military-controlled government that vigorously suppresses freedom of expression is okay?