RS Public Company Limited (SET: RS) has announced the resolution of its Board of Directors meeting on September 17, 2024, to approve the disposal of RS UMG Company Limited at a total valuation of THB 605.10 million, through its wholly owned subsidiary, RS Music Company Limited.
The company noted that the company may receive additional compensation from the Purchaser in an amount not exceeding THB 69.21 million, according to the conditions to be agreed upon by the contracting parties. After the completion of the transaction of disposal of investment in an associate company, RS UMG will cease to be an associate company of RS.
RS stated that it expects to enter into contracts related to the transaction by September 2024.
Expected Benefits of the Transaction
1) The company will receive cash to spend to expand the business of the group which helps raise the level of competitiveness and create long-term growth of the company’s performance.
2) Promote the financial liquidity of the company while maintaining relationships with strong business partners, including receiving a share of revenue from music copyright collection management within Thailand continuously.
3) The company will be committed to developing content to take advantage of the strengths of RS’ business partnership with Universal Music Group to create income growth from online channels.
