The share price of GMM GRAMMY Public Company Limited (SET: GRAMMY) briefly hit the ceiling in the trading session on Tuesday after bringing Tencent Music Entertainment Group as a strategic partner.
The price rose as much as 29.31% to THB7.50 per share before dipping slightly to THB7.30 per share as the session approached mid-day.
GMM Music Public Company Limited’s board of directors has approved the sale of 80,000,000 ordinary shares of GMM Music to Black Serenade Investment Limited, a company jointly established by Tencent Music Entertainment Group and Tencent Holdings Limited.
The sale amounts to 10.00% of the total issued and paid-up ordinary shares of GMM Music, valued at USD 70,000,000 (approximately THB 2,570,827,000).
The Buyer Group (including Tencent Music Entertainment Group, Tencent Holdings Limited, and their affiliates) will pay for the shares in cash and with 30.00% of the total issued and paid-up ordinary shares of Joox Thailand, a subsidiary of Tencent Music Entertainment Group.
GRAMMY Tomorrow Limited, a subsidiary fully owned by GMM Music Public Company Limited, will receive 3 ordinary shares (30.00%) of Joox Thailand from The Buyer Group for USD 25,000,000 (approximately THB 918,152,500).
After the acquisition, Joox Thailand will become an associate company of GMM Music Public Company Limited.
