BANGKOK, March, 28 2016 - (ACN Newswire) - Mr Kavin Kanchanapas, Chairman of the Executive Committee, VGI Global Media PCL (SET: VGI), announced the company's decision to maintain leadership and build a countrywide out-of-home (or "OOH") advertising media network by increasing its equity stake in Master Ad PCL (SET: MACO) from 24.96% to 37.42%, acquiring shares worth THB 412,500,000 in MACO from existing shareholders (THB 1.10 per share), tendering offers to all retail investors and becoming MACO's majority shareholder.
The move is aimed at achieving MACO's exponential growth rates as part of VGI's efforts to maintain a vast network in Thailand that covers a comprehensive range of OOH advertising media to allow it to better respond to the growing demand for OOH advertising media associated with the target audiences' changing lifestyles.
Mr Nopphadon Tansalarak, Chairman of the Executive Committee of MACO, noted that the mutual strength and cooperation between the two companies over the past years have culminated in the decision of VGI to raise its equity holding in MACO. The decision, he said, confirms both companies' successful collaboration and marks a major milestone for the companies' campaign to strengthen their OOH advertising media network, and it is welcomed by all members of MACO's management.
MACO has been in the advertising media business for more than 27 years. It is a leading provider of outdoor advertising media services, offering all solutions related to such services, such as design, media offering, production. Today, its advertising media include 398 items of billboards along the highways across Thailand and medium-size media at major intersections and on buildings in the provincial commercial districts, 265 lightboxes at PTT petrol stations/Jiffy shops, 555 items of street furniture (i.e. advertising signboards on the pillars of BTS skytrain networks and overpasses in Bangkok, 124 items of transit media (i.e. advertising media on tollway booths) and seven items of advertising media at the New Morchit Bus Terminal.
Mr Marut Arthakaivalvatee, VGI's Chief Executive Officer, added that the increased holding represented a crucial step to expanding VGI's OOH/outdoor advertising media network, as the OOH advertising media under both companies' management will make the companies' network Thailand's most extensive that covers a great variety of audiences and caters to all demands from the market, which will, in turn, result in a bigger combined market share for both companies.
"MACO's outdoor advertising media will be added to VGI's portfolio of OOH media, which currently include media in the segments of transit (in BTS skytrains and stations), office buildings and condominiums and airports. MACO will also benefit from VGI's activation team, which implements marketing activities directed at consumers, such as sampling, demonstrations, spot redemption and raffle schemes, etc.," said he.
Mrs Suparanan Tanviruch, VGI's Chief Financial Officer, concluded by highlighting MACO's great management efficiency as shown by the company's successes of maintaining consistently high revenue and profitability levels over the past three volatile years, with an average gross profit margin ratio recorded at 54%, an average net profit margin ratio at 22% and an average return-on-equity ratio at 23%, and declaring consistently high dividends. She is confident that VGI's increased investment in MACO will improve VGI's revenue and profitability growth, and hence maintain VGI's overall growth momentum.
About VGI Global Media PCL
VGI Global Media Public Company Limited (SET:VGI) is Thailand's major provider of out-of-home media solutions, having more than 10,000 items of large still-image screens in the BTS skytrain network and large retail stores nationwide. It also has over 11,000 sq.m. of advertising space in the product display zones of large modern trade stores, as well as about 5,000 items of digital screens and media in the BTS platform and train areas, the Tesco Lotus, Big C, and Watson stores, and large office towers throughout Bangkok, and mega LED and outdoor led screens under its management. In addition, the company runs retail shops in 23 BTS stations and radio networks covering nearly 2,000 modern trade stores in Thailand. For more information, please see www.vgi.co.th.
Source: VGI Global Media PCL
Topic: Press release summary
Sectors: Financial,Broadcast & TV,Advertising & Media
From the Asia Corporate News Network