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Published on August 28, 2007

Group president Thanachai Santichaikul yesterday said the company's non-core assets were worth about Bt5 billion, including printing machines, land in Bangkok and upcountry and he Nation Tower on Bang Na-Trat Road.

The value of these non-core assets is relatively high compared with those of other media companies, but returns from them are insufficient to finance the company's interest expenses, which amount to Bt200 million a year, he said.

This year, the company plans to sell the Nation Tower, which is valued at Bt1.4 billion, as well as about Bt200 million worth of land. The company plans to use the proceeds to help repay its debts, which currently stand at about Bt3 billion, enabling it to record a net profit next year.

Thanachai said the company had been wanting to sell the Nation Tower for three years. However, buyers want to own all of the space inside the tower, and so the company has had to buy space back from existing owners before selling the tower. This year, the company has spent about Bt40 million buying back the tower's office space. Currently, there is only 2-3 per cent of space left to be bought back, and that is expected to cost less than Bt100 million.

"The appraised price of the Nation Tower is Bt1.4 billion. There are currently several potential buyers talking to the company. However, some of them want a big discount from the appraised price, so we cannot sell. The sale of the building must not affect our balance sheet," Thanachai said.

NMG publishes The Nation, Krungthep Turakij, Kom Chad Luek, Nation Weekender, Nation Junior and Bizweek. It operates the Nation Channel cable-television station, as well as Nation radio and a number of websites and related edutainment services.

Thanachai said losses recorded earlier by the company were due mainly to its high interest burden. Therefore, if it can sell its these assets, it can repay debts to three creditors.

Recently, the company has restructured debts of Bt1.87 billion as part of plans to refinance its debentures, for which Bt500 million will be due next year and Bt500 million in 2009. The remaining Bt870 million has been rescheduled from short-term to long-term loans.

Siriporn Chanjindamanee

 The Nation