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Thailand releases a new M&A regulations

Thai broadcasting regulator, National Broadcasting and Telecommunications Commission (NBTC), has released a new set of regulations governing mergers and acquisitions and cross-holdings in the broadcast and radio industry to curb domination in the sector. 

NexTV Asia reports that under the new rules, TV and radio licence holders who are interested to take over or acquire a stake of over 25% directly or more than 50% indirectly in another licensed company have to receive NBTC approval at least 60 days in advance. This new rule enables the regulator to investigate any patterns of M&A and cross-holding in the broadcasting business both horizontal and vertical.

The documents for approval should include its objectives, a market analysis and overview, financial statements, company reports and supporting documents. After receiving approval, the buyers must declare and update their financial statements, market analysis and company structure to the regulator every six months for two years.

Major shareholders and controllers will not be allowed to hold more than one TV or radio licence in the same category. If the regulator gets the go-ahead from the Broadcasting Committee, it might order the licence holder to reduce its stake to comply with the rule.