NMG urges broadcasting watchdog to probe SLC share buy-up

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NMG urges broadcasting watchdog to probe SLC share buy-up
WATCHIRANONT THONGTEP
THE NATION



BANGKOK: -- Nation Multimedia Group yesterday issued an open letter appealing to the National Broadcasting and Telecommuni-cations Commission (NBTC) to examine the purchase NMG shares by Solution Corner (SLC) and its affiliates.

Adisak Limprungpatanakij, president of Nation Broadcasting Corporation, the operator of Nation TV, said action should be taken to prevent unfair holding of shares across different media channels.

"Like the energy sector, media is one of the most sensitive industries in terms of national security and public interest. The NBTC should be more active in regulating media companies, along with the SEC," or Securities and Exchange Commission, Adisak said on behalf of NMG.

In the letter addressed to the five members of the NBTC's broadcasting committee, NMG provided facts, key information and details about stakes now being held by SLC and affiliates.

It also explained the potential risk of broadcasting law being breached when SLC, which is a direct owner of the Spring News digital TV station, would also hold a 12.27-per-cent stake in NMG's two digital channels - Nation TV and Now 26.

NBTC members will talk with SEC officials next week to determine whether SLC's share purchase in NMG is in line with existing stock market rules, member Supinya Klangnarong said yesterday.

Referring to the rules under which the NBTC auctioned off licences to operate digital TV channels, Adisak said each bidder was allowed to hold a maximum of three licences, but could not hold more than one in the same category. The aim was to prevent market domination. Hence software provider SLC might be violating the rule by having a share cross-holding of more than 10 per cent.

Apart from that, SLC affiliate Wattana Capital holds a 7-per-cent stake in NMG and an individual also linked to SLC holds another 9 per cent, which combined put up to 30 per cent of NMG shares under SLC's control.

Adisak also questioned SLC's real intentions, because its moves appear to be in conflict.

"They know that Nation TV is in direct competition with Spring News TV. Why don't they spend the money they used to acquire NMG stakes to improve Spring News TV's programming instead?" Adisak asked.

He also said the auction rule in question should be extended by 15 years to ensure that freedom of media and fair competition exist.

The NBTC's legal advisory team is investigating the case.

Meanwhile, NMG president Duangkamol Chotana said yesterday that media outlets under the group were protecting the public interest by scrutinising the massive purchase of its shares by SLC and its affiliates.

She added that NMG was ready to scrutinise all investors with questionable backgrounds in order to protect the group's freedom and independence.

"We have the legitimate right to examine this group of investors, which consists mainly of SLC. Media business is not an ordinary business. The Nation needs to adhere to the public interest, and we want our shareholders to support our way of doing business," Duangkamol said.

Her remarks came in response to one issued earlier yesterday by SLC. She rejected SLC's allegations that NMG media outlets were scrutinising its share buy-up out of personal interest.

She said NMG did not deny that the rules of capitalism allowed investors to acquire shares via the stock market, but news media rely on the faith of the public and members of their staff as well as support from different elements in society.

"We won't stay still. We have seen a lot of dubious behaviour, and it is our duty to scrutinise them and tell the public." She added that questionable actions by certain investors had adversely affected the Thai stock market.

Earlier, SLC threatened to take legal action against NMG organs that carried articles accusing it of trying to dominate media outlets via its Bt1-billion purchase of NMG shares.

In a statement, SLC said it would take both criminal and civil action against these outlets as well as against anyone who posted such information online.

SLC said it would also call on media professional groups, namely the National Press Council, the Thai Broadcast Journalists Association and the News Broadcasting Council of Thailand, to find out if NMG executives were violating any code of ethics.

SLC added that the funds used to purchase NMG shares came from its capital increase last October and denied allegations that it was acting as a tool for certain political groups to take control of news media.

Meanwhile, a senior NMG executive yesterday called on the broadcasting regulator to work more closely with the Securities and Exchange Commission (SEC) to prevent cases of listed media companies being monopolised.

In a related development, Department of Special Investigation director-general Suwana Suwanjata has assigned her deputy Wannapong Kotcharag to lead an investigation into SLC's acquisition of NMG shares.

She explained that Wannapong was given the job because he had a strong background in banking and financial cases.

Meanwhile, the Stock Exchange of Thailand and the SEC have discussed the setting up of measures to close a loophole that may allow unfair practices of listed firms in raising funds by issuing private placement (PP) shares to specific investors.

"The measure is aimed at blocking unfair practice among general investors in the capital market and at upgrading the practice of selling PP shares to the same standard as public-offering shares," SET president Kesara Manchusree said. "The two authorities are expected to come up with measures soon."

The SET SEC had reportedly considered launching a measure to protect general investors from the unfair sale of PP shares - usually offered below market price - by applying a period of silence for PP investors. The SEC wanted the companies to explain what they would do with the proceeds from PP share sales in their disclosure filing.

Source: http://www.nationmultimedia.com/business/NMG-urges-broadcasting-watchdog-to-probe-SLC-share-30251788.html


-- The Nation 2015-01-13