Thailand’s listed entertainment retailer DNA 2002 (DNA) announced that it will be divesting its entire 75 per cent stake in the local digital media firm PrimeTime Entertainment Co Ltd (PTE) to Thai individual investor Varinthorn Terdwattanakarnkij for 20 million baht ($571,000).
PTE is a provider of video on demand services and TV online service in Thailand.
According to the statement, the disposal of PTE stake will enable DNA to reduce the risk of business that requires high investment, although the return on investment is not as good as was expected.
“Since PTE’s performance has not met our expectation. We need to reduce the risk of making loss to improve our financial performance,” said Sittichai Gasornsombat, director of DNA 2000.
PTE reported total revenue of 7.92 million baht and the net loss of 190.3 million baht in 2015. It had total assets of 123.86 million baht and total liabilities of 218.28 million baht at the end of last year.
The proceeds from the sales will be used as the company’s working capital, he added.
At the same time, DNA will purchase 510 ordinary shares of Laos-based IT Solution firm AEK Sole Co Ltd, which represents 51 per cent of total shares, for around 4.4 million baht.
This new investment will help increase its revenue channels and diversify risk from the core business. Additionally, the company said that it is looking to expand into a new market with high potential for economic growth. This would enable the company to generate higher income and promote sustainability of the group.
It will use the working capital for this investment, he added.