Media giant undergoes ownership restructuring
GMM Grammy Plc has change its shareholding structure by transferring all of the company’s shares to Fah Dam- rongchaitham Co.
An official letter addressed to the Stock Exchange of Thailand (SET) from the entertainment conglomerate GMM Grammy stated that the company has changed its shareholding in the company by transferring all of the company’s shares to Fah Damrongchaitham Co — a holding company incorporated by a group of shareholders for the purpose of restructuring the Damrongchaitham family’s shareholding structure in order to support the family’s business governance in the long term.
GMM Grammy is one of the largest media conglomerate entertainment companies in Thailand with a 70% share of the Thai entertainment industry. Top artists include Bird Thongchai, Silly Fools, Loso, Tai Orathai, Bie Sukrit, Tata Young, Mos Patiparn, Bodyslam, Getsunova, and Joey Boy. In addition to its music business, the company is involved in concert production, artist management, film and television production, and publishing.
The transfer of the company’s shares to Fah Damrongchaitham took place yesterday.
As a result of the transfer, Fah Damrongchaitham has a shareholding of 52.05% of the company’s total voting rights, and has become a major shareholder of the company. Before and after the restructuring, however, the group of shareholders remains the shareholders of the company by holding the company’s shares indirectly through Fah Damrongchaitham and there is no change of control in the company. The details of the shareholding of the aforementioned shareholders before and after the restructuring are summarised in the graphic.
Fah Damrongchaitham and the group of shareholders will report an acquisition or disposition of the securities (Form 246-2) and changes of securities and derivatives holdings in the company (Form 59) to the Office of the Securities and Exchange Commission in due course.
The company has been informed by the group of shareholders that Fah Damrongchaitham and the group of shareholders are not required to make a tender offer for all of the company’s shares pursuant to section 247 of the Securities and Exchange Act B.E. 2535 (as amended) as Fah Damrongchaitham and the group of shareholders have obtained a waiver not to make such a tender offer for all of the company’s shares on the basis that the restructuring does not result in a change of control in the company.
The company informed the SET that the change in shareholding has no effect on the company’s management structure and policies, and control over the company will remain the same.