FRIDAY, March 29, 2024
nationthailand

VGI buys 40% stake in Demo Power

VGI buys 40% stake in Demo Power

VGI GLOBAL Media yesterday announced the acquisition of a 40-per-cent stake in Demo Power, a provider of event-management services and marketing-related activities, in a move that is expected to complete VGI’s mission to become a nationwide integrated media-platform provider.

The company is purchasing 12,000 ordinary shares in Demo Power, with a par value of Bt100 each.
Under the deal, which VGI reported to the Stock Exchange of Thailand, Demo Power will be granted an exclusive right to operate commercial space at 23 BTS Skytrain stations – for which the original rights were granted to VGI by Bangkok Mass Transit System – for the provision of services for marketing activities, sales promotion, products and services, as well as advertising opportunities for Demo Power’s clients. 
 VGI chief executive officer Surachet Bamrungsuk said Demo Power was the country’s leading provider of event-management and marketing services, involving product launches and point-of-sale demonstration at more than 1,000 major retail outlets in the Tesco Lotus, Big C Supercentre, 7-Eleven, Villa Market and FamilyMart chains. 
“Realising that our new business partner occupies a more than 70-per-cent share in the market for on-ground marketing services, we hope this investment can strengthen VGI’s service in response to clients’ demands for the greatest efficiency in advertising spending,” he said. 
Demo Power, which normally generates revenue of more than Bt500 million a year, will now expand its business activities at 23 authorised BTS stations and 146 office buildings for which VGI has obtained rights to manage advertising space, and at other media outlets under the care of VGI, in order to reach targeted customers.
The recent acquisition is expected to complete VGI’s jigsaw in its quest to become a nationwide integrated media-platform provider through the utilisation and analysis of big data generated by Rabbit Card users to aid in the creation of an innovative, audience-targeted ad-media service.
 In a previous interview, the CEO elaborated that through data analysis of usage by its more than 2.3 million active Rabbit cardholders, his company would be able to transform simple demographic data into psychological data, bringing a new added-valued service for both existing and new VGI clients.
 VGI’s 40-per-cent stake in Demo Power appears to be in line with its key business strategy to accelerate growth via a series of acquisitions. 
 Previously, VGI acquired 90-per-cent stakes in Bangkok Smartcard System and BSS Holdings, the operators of e-wallet platforms through Rabbit Line Pay and Rabbit Cards.
 

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