JKN Global Group Public Company Limited (SET: JKN) has published a statement to clarify the sales of JKN Legacy, Inc., which operates Miss Universe Pageant, to Legacy Holding Group USA Inc., owned by a Mexican Tycoon Raul Rocha, for THB582 million.
The company stated that the sales was primarily made prior to the announcement for rehabilitation, but the official notification to the Stock Exchange of Thailand and acknowledgement by the Board of Directors came after the company announced its plan for rehabilitation due to a lack of liquidity to the point that it fails to meet obligations to debentureholders.
JKN stated that the company was seeking investors to invest in JKN Legacy, Inc. (JKN Legacy) before realizing the necessity of filing a petition for business rehabilitation with the Central Bankruptcy Court. This is part of the company’s pre-existing plan, aiming to find strategic global partners that can contribute to the development of the potential and financial readiness of JKN Legacy, a subsidiary engaged in the Miss Universe Organization (MUO) owing the copyright of Miss Universe, which can leverage its experience and expertise to drive the Miss Universe brand towards premium products and services.
The company noted that in August 2023, it was contacted by Mr. Raul Rocha Cantu, a business partner with JKN Legacy and a shareholder of Legacy Holding Group USA Inc., and JKN realized the necessity to restructure the shareholding structure in JKN Legacy to suit international investors better.
In this regard, JKN had sold 50% of its shareholding in JKN Legacy to Legacy Holding Group at a total price of USD 14,500,000 on October 20, 2023, which is before the company filing the petition for rehabilitation with the Central Bankruptcy Court on November 8, 2566.
JKN stated that the company had received the payment in full and is now working with a financial advisor to prepare the details for utilization of the proceeds, which will be disclosed on February 15. JKN noted that it intends to utilize the funds to enhance liquidity and provide working capital for its subsidiary’s operations, supporting the Company’s business rehabilitation plan.
JKN also clarified that despite the execution of the Share Sale and Purchase Agreement on October 20, 2023, the share sale and purchase transaction of shares in JKN Legacy has not yet been definitively concluded due to several details that needed to be settled. Later, the sales was completed on January 22, 2024, local time in Mexico, corresponding to January 23, 2024, local time in Thailand.