SET-listed Master Ad Plc (MACO), a leading out-of-home (OOH) media provider, has announced a 335-million-baht deal to buy a 70% stake in Co-mass Co, an outdoor billboard provider in urban areas.
Master Ad's board recently approved the acquisition plan, which will use its subsidiary Eye On Ads to buy Co-mass' shares from Prime Location Co. The deal is expected to be completed by June.
Suparanan Tanviruch, Master Ad's chief financial officer, said the acquisition would enhance its OOH media service system and drive revenue growth.
With 19 years of experience, Co-mass has 113 outdoor billboards and seven LED screens in Bangkok and five other major provinces. Its combined media capacity is valued at 200 million baht a year.
Master Ad expects its media capacity to reach 140,000 square metres and valued at 1.4 billion baht after acquiring the stake in Co-mass. Master Ad's own billboards are mostly located along highways and gateways while Co-mass has billboards in prime business areas.
"The investment in Co-mass will be mutually beneficial and our billboard coverage will be bigger to serve advertising customers. We hope our sales will grow more than 35% this year," she said.
Last year, Master Ad generated 756 million baht in total revenue, with 102 million in net profit.
Ms Suparanan said Master Ad's traditional billboards in prime locations around Bangkok will get a digital upgrade to create value-added service for attracting brands and advertisers.
Master Ad said its first quarter revenue slightly missed the target due to the mourning period, which affected the entire media industry.
MACO shares closed yesterday on the Stock Exchange of Thailand at 1.29 baht, down two satang, in trade worth 6 million baht.