The struggling local media company JKN Global Group Plc has said it will sell a 50% stake in its Miss Universe business for $16 million (570 million baht).
The shares in JKN Legacy Inc, which owns the copyright to the beauty pageant, will be acquired by Legacy Holding Group USA Inc, controlled by the Mexican businessman Raul Rocha Cantu, JKN said in a filing to the Stock Exchange of Thailand. Mr Rocha owns Legacy Holding and holds the Miss Universe Mexico copyright, according to a separate statement.
JKN Global will still hold the other 50% stake in JKN Legacy and will retain control over the owner of the Miss Universe copyright, the Thai company said.
The move comes as JKN — which bought the Miss Universe Organization for $20 million in 2022 — has delayed some payments on its bonds, citing global and domestic economic challenges.
The company in November last year filed a petition for business rehabilitation with the Central Bankruptcy Court, even after some investors had agreed in September to extend the payment of bonds that were coming due.
Legacy Holding is a significant global strategic partner that will be able to “enhance and strengthen” the Miss Universe Organization, including its financial readiness, JKN Global told the SET. The transaction is expected to be completed by September.
The company will also use proceeds from the share sale to improve its liquidity and working capital for the business operations and support its restructuring plan, it said.
JKN shares jumped 21% on Tuesday — extending a two-day rally to 58% — after the company said it had initiated contact with investors to explore a variety of potential sources of business funding, and local media reports that the Miss Universe business was for sale.
The shares rose another 23 satang (30%) on Wednesday to close at 0.99 baht, in heavy turnover worth 371 million baht.
In its petition to the bankruptcy court in November, JKN proposed itself as the planner of the rehabilitation.
“JKN will receive financial support from new investors or financial institutions to provide working capital. Non-productive assets would be sold to generate income to repay debts,” company founder and chief executive Jakkaphong “Anne” Jakrajutatip said at the time.
Ms Jakkaphong, a celebrity media tycoon and transgender rights advocate, made global headlines when she announced her company’s purchase of the Miss Universe Organization in November 2022.
At the time she promised to transform the competition, opening it to married as well as transgender women. “This will be the world’s first beauty contest with real gender equality and inclusion,” she said.
The contest run by the Miss Universe Organization, which was co-owned by Donald Trump between 1996 and 2002, has been running since 1952.
