“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.