By THE NATION
VGI’s planned purchase of the18.6 per cent stake in Plan B Media Plc, Thailand’s biggest OOH advertising media provider, was announced in a statement to the Stock Exchange of Thailand (SET) on Tuesday. The share deal will place both companies at the top of the Thai OOH market with around Bt12 billion in media inventories spanning 77 provinces, as well as strengthening their positions in the Asean region.
Nelson Leung, chief executive of VGI, said that by leveraging the two companies’ core capabilities, “new product development, product bundling, performance-driven services and total marketing solutions, the acquisition provides a major opportunity for both businesses to improve utilisation and fortify” overall revenue and profits.
“Effectiveness and measurability are among the most important factors in the success of future advertising,” Leung said. “We are very excited that our strategic alliance with Plan B will enable us to combine Plan B’s digital reach and content with VGI’s prominent quality data pool. It is a further milestone on our path towards targeting that takes place across combined marketing channels throughout the customer journey within our ecosystem.”
Palin Lojanagosin, chief executive of Plan B, said: “With this partnership, we will fully leverage VGI's ecosystem to offer unique products and services in the market. With our nationwide network of digital screens, Plan B’s portfolio optimally complements and strengthens VGI’s advertising platforms.
“Together, we will be able to provide advertisers in the market with a product that combines the power of data and quality content with the largest OOH advertising spaces, which will be an indispensable part of the market in the future.
“Though our combined share is still small in comparison to the country’s Bt120 billion advertising market, this collaboration will strengthen both our companies’ positions in the industry and propel us to be among the leading media players within Asean.”
In VGI’s filing to the SET, the company said that its board met to approve the purchase of its investment in Plan B. It will subscribe to 352,960,736 newly issued ordinary shares in Plan B and buy 368,843,969 ordinary shares in the company from existing shareholders: Plan B Investment Holding Limited, Outdoor Media Investment Limited, PT Elang Mahkota Teknologi TBK, and Dr Pinijsorn Luechaikajohnpan.
Thailand's OOH media market is worth between Bt10 billion and Bt12 billion annually. Now, VGI and Plan B Media controlling 50 per cent and 20 per cent of that market, respectively.
The share purchases enabling the deal will be carried out later.