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Thai music firm GMM Grammy to merge with media unit

Wed Aug 13, 2008 11:22pm EDT

BANGKOK, Aug 14 (Reuters) - Thailand's largest music and entertainment group, GMM Grammy GRAM.BK, said on Thursday it would merge with its 79.75 percent owned subsidiary, GMM Media GMMM.BK, as part of a business restructuring.

GMM Grammy would make a tender offer to buy the GMM Media shares it does not already own and delist the unit from the Thai stock market, the two companies said in separate statements.

As part of the purchase, the top music firm would issue 40.56 million new shares to swap for GMM Media shares at a 1:1 ratio.

GMM Grammy is valued at $190 million, while GMM Media has a market value of $66 million.

At 0304 GMT, GMM Grammy shares were up 1.5 percent at 13.20 baht, while shares in the media unit jumped 13 percent to a three-month high of 12.60 baht. The Thai market index .SETI was up 0.5 percent. (Reporting by Khettiya Jittapong; Editing by Alan Raybould)



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