24-1-2024 (BANGKOK) JKN Global Group Plc, a struggling local media company, has announced plans to sell a 50% stake in its Miss Universe business for $16 million (570 million baht). The shares in JKN Legacy Inc, which holds the copyright to the renowned beauty pageant, will be acquired by Legacy Holding Group USA Inc, controlled by Mexican businessman Raul Rocha Cantu, according to a filing made by JKN to the Stock Exchange of Thailand. Rocha, who already owns the Miss Universe Mexico copyright, will now have a controlling interest in Legacy Holding.
JKN Global will maintain the remaining 50% stake in JKN Legacy and retain control over the Miss Universe copyright, as stated by the Thai company. The decision to sell the stake comes as JKN faces financial challenges, including delayed bond payments due to global and domestic economic difficulties. In November of last year, the company filed for business rehabilitation with the Central Bankruptcy Court, even after some investors had agreed to extend the bond payment deadlines.
The acquisition by Legacy Holding is seen as a significant strategic partnership for JKN, which aims to strengthen and enhance the Miss Universe Organization’s operations, including its financial stability. The transaction is expected to be finalized by September. The proceeds from the share sale will be utilized to improve JKN’s liquidity, working capital, and support its restructuring plan.
Following the announcement, JKN’s shares experienced a notable surge, rising by 21% on Tuesday and extending the rally to 58% over two days. The positive response can be attributed to the company’s initiation of contact with potential investors to explore various sources of business funding, as well as local media reports indicating the potential sale of the Miss Universe business.
On Wednesday, JKN shares further increased by 23 satang (30%), closing at 0.99 baht, with a significant turnover of 371 million baht.
In its bankruptcy court petition last November, JKN proposed a rehabilitation plan, positioning itself as the architect of the recovery. Jakkaphong “Anne” Jakrajutatip, the company’s founder and CEO, stated that JKN would seek financial support from new investors or financial institutions to secure working capital. Additionally, non-productive assets would be sold to generate income for debt repayment.
Jakkaphong, a prominent media tycoon and advocate for transgender rights, gained international attention when she announced JKN’s acquisition of the Miss Universe Organization in November 2022. At the time, she pledged to transform the competition by allowing married and transgender women to participate, aiming to create a beauty contest that embodies genuine gender equality and inclusion.
The Miss Universe Organization, which was co-owned by Donald Trump from 1996 to 2002, has been running the prestigious pageant since 1952.
