The share price of JKN rose as much as 25% early Monday and closed the morning session at THB 0.57 after a rumor spread from one website that claimed the company is selling its rights in Miss Universe Organization.
Mr. Narongdet Chandrapaisarn, Director of Securities Analysis at AIRA Securities, stated that there is a rumor saying JKN Global Group Public Company Limited (SET: JKN) will sell its Miss Universe Organization (MUO), but without an affirmation from the company, while the story caused the speculations from the stock.
The rumor widely spreaded that Mr. Jakkaphong Jakrajutatip, CEO and Managing Director of JKN, is negotiating to sell MUO to Raul Rocha, a Mexican billionaire, and will officially announce the deal tomorrow. Meanwhile, a popular Facebook page relating to beauty competitions in the Philippines posted that MUO is possibly being taken over by a new owner or having a joint venture between JKN and a Mexican businessman soon.
JKN did not comment on the topic.
Sources from the financial business field stated that the sales negotiation of MUO from JKN has to be included in the company’s business rehabilitation process as it filed the petition to the Central Bankruptcy Court, in which the court had already approved the petition and ordered the company to draft the rehabilitation plan to request approval from the creditors in order to clear all its problems regarding debts and assets. At present, JKN has an automatic stay on its debt payment as well as large debentures, which, in terms of assets, MUO is regarded as important to its business that is a part of the company’s asset under the automatic stay as well.
As a result, if there were to be a sales negotiation of MUO with any buyers or a negotiation regarding rights acquisition from the main rights holder, the deal must be approved by the creditors in the final process, despite the completion of the deal. This excludes the rights acquisition in parts, as in the competition in each country, which can be interpreted as the usual business operation.
After the morning session closed, JKN published a statement regarding online media news via the Stock Exchange of Thailand (SET).
JKN stated that the company has taken steps to seek for investors with the requisite knowledge, capabilities, and financial resources with aims to achieve the company’s management and development plans of its subsidiary companies engaged in the Miss Universe beauty pageant competition. The company has initiated contact with investors, explored various potential sources of business funding, and examined investment proposals that have been carried out over the time. The company anticipates that a summary of the aforementioned matter will be made available in due course. For the news regarding the matter to be announced tomorrow, the company has not yet received the finalized details of the aforementioned matter. The company will promptly inform SET of any progress made in this regard.