Maco takes 50% stake in Hello Bangkok for B1.95bn

Maco takes 50% stake in Hello Bangkok for B1.95bn

Out-of-home media network firm Master Ad Plc has acquired a 50% stake in Hello Bangkok LED for 1.95 billion baht as it strives to spread its outdoor media network across the country.

Phoon Chiong Kit, director of Master Ad (Maco), said proceeds from the transaction will be used to expand the network of Maco outdoor media in the country, helping it to become the largest owner of outdoor advertising media in Thailand.

Maco has also offered to sell 1.08 billion new shares of the company in a private placement priced at 1.44 baht per share, totalling 1.55 billion baht, to PlanB Media Plc as a strategic funding source for the acquisition.

In addition, the company will assign PlanB the sole distributor for all of Maco's outdoor media in the country with a minimum guarantee of 700 million baht per year, together with a 85-90% revenue-sharing deal with the company.

Hello Bangkok LED, an outdoor advertising billboard business, occupies billboards located in Bangkok's central business district and other provinces. The company has 134 large billboards and 74 digital billboards throughout the country.

Mr Phoon said the network expansion will drive the company's performance, as it will own the largest outdoor advertising network.

Profit-sharing from Hello Bangkok LED's advertising media is expected to begin to be recognised by the first quarter of 2020.

As for the business operation, Mr Phoon said Maco will now focus on expanding the business into international markets, especially in Asean, while the operations have already been extended to Malaysia and Indonesia.

Maco will also maintain its leadership of the outdoor advertising network in Thailand through professional management, such as PlanB.

Combining the strengths of the affiliated company helps support Maco in becoming the backbone of the complete system in multimedia and will assist future growth, Mr Phoon said.

This deal is expected to be completed by December 2019.

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