BTS Group Holdings Plc (BTS) has acquired a 7% stake in RS Group for 1 billion baht, a move expected to generate multiple new business opportunities and provide a foundation for expansion of its multi-platform commerce.
RS plans to launch a variety of new projects to reach its target of 10 billion baht in revenue by 2022.
Surachai Chetchotisak, chief executive of RS Ltd, said this year is important for the company as it transitions towards commercial business based on multi-platform commerce and direct-to-consumer principles.
Kavin Kanjanapas, chief executive of BTS Group Holdings, said this strategic partnership will expand business opportunities for both BTS and RS.
BTS serves over 1 million passenger trips per day on rail lines in Greater Bangkok. The mass transit network expects to expand from 48.9 kilometres to 133.4km by 2021.
BTS subsidiaries VGI offers advertising services with a media capacity of over 12 billion baht, while Rabbit Line Pay serves more than 18 million users and Kerry Express delivers to 1.2 million consumers daily.
Combined with RS's MPC, which reaches more than 1.2 million consumers and has annual sales of 2.1 billion baht, Mr Kavin said he believes this investment will enable both firms to capture greater market share.
"This investment by BTS represents a new dimension in alliance-building between companies from different sectors, aimed at creating new project opportunities for both parties and supporting the expansion towards MPC to ensure superior capability over its competitors," Mr Surachai said.
"We expect the investment will help us reach our stated income level goal more rapidly."
BTS Group's purchase of shares in RS will have no effect on the company's management and Mr Surachai remains RS's largest shareholder.