The owner of Miss Universe is now half Thai half Mexican after JKN Global Group Public Company Limited (SET: JKN) has officially sold half of its shareholding in a subsidiary that directly operates the Miss Universe Organization to increase its liquidity and also strengthen the capabilities of the world-class beauty pageant.
The company announced on Tuesday that its Board of Directors had acknowledged the sales of its subsidiary to Legacy Holding Group USA Inc., owned by a Mexican Tycoon Raul Rocha, for THB582 million.
JKN stated that the transaction leaves the company holding 50-50 shares in the subsidiary, but will retain control over the company as three of its directors will sit at the Boards, which has the majority voting rights. The upside is that JKN will be able to consolidate the financial statements of its subsidiary into its earnings results.
Surprisingly to the market, JKN stated that it entered into a Share Sale and Purchase Agreement with Legacy Holding Group in October last year and expected the deal to complete by September 2024. The marker was unaware of this deal until the rumor broke out on Monday this week.
In light of this transaction, JKN will receive additional funds to increase liquidity for the subsidiary’s operations, and enhance and strengthen the capabilities of the Miss Universe Organization, including financial readiness from capital sources received from Legacy Holding Group.
Additionally, JKN said that the proceeds from this divestment will be used to increase liquidity of the company as well as to support the restructuring plan.
