Thailand’s GRAMMY sells its stake in Index to WAVE Entertainment

Brand image from the company website

One of Thailand’s leading entertainment firm GMM Grammy (GRAMMY) plans to sell its entire stake in the event organiser Index Creative Villageto Wave Entertainment PCL for an undisclosed amount.

“We are waiting for the Board’s approval, and then the deal should be sealed by the end of this month,” the source from WAVE entertainment disclosed.

WAVE stock has increased by 23.48 per cent from 7.45 baht apiece to 9.20 baht over the last week, while its daily trading value surged from around 1.5 million baht to 10-20 million baht.

There were two reasons that has led to the spoke in its stock price. One was the cheaper par price, which the company earlier adjusted from 10 baht to 1 baht apiece, in a bid to make the trading more flexible.

Another source from the entertainment industry cited that Grammy agreed to close this deal for 400 million baht ($11.94 million), which is much lower than the offer it had earlier got from the Co-CEO of Index at 1 billion baht.

“I think that they might have some other agreement that will benefit Index in the long term. However, WAVE is a good partner for Index because their business can support each other,” another source said.

WAVE’s chief executive Matthew Kichodhan previously told the media that the company’s projected the revenue this year, would reach 2 billion baht, up from 600 million baht last year, after it expanded into other businesses including, retail, restaurants and education – which would recognise the full revenue this year.

WAVE has allocated a budget of 3 billion baht for expanding its lifestyle and entertainment business. Half of the budget will be spent on the acquisition that supports it push in the lifestyle and entertainment sectors, he said.

Grammy has exited from all of its non-core businesses. Recently, it just sold six magazine businesses to Tassapon Bijleveld, chief executive of Thai AirAsia, for 45 million baht.

Grammy’s chief executive officer Busaba Daoruang refused to comment on the deal, but said that the group would divest from businesses, which are not related to entertainment and digital TV. This would help make its debt-to-equity ratio as low as possible for its expansion in the future. She said that its operation result would turn into green again after all divestment.

In the first quarter of this year, it recorded the revenue of around 3 billion baht, up 51 per cent from the same period last year.

Related stories:

Thailand’s Index Creative Village expects new partner in June

Grammy sells its stake in SE-ED to Wuttipoom

WAVE acquires Jeffer Steak for $18m

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.