SET-listed vending and top-up machine operator Sabuy Technology is moving into automated teller machines (ATMs), one of six moves it is making to expand its business ecosystem.
Sabuy's board has approved the purchase of 50% of the shares of Platt Finserve (PFS) for 1.13 billion baht from Cash Machine Capital. PFS holds the right to install 10,000 ATMs in front of 7-Eleven convenience stores across the country for 10 years.
"We see that ATM kiosks will replace routine operations in the banking sector, including opening new bank accounts. This responds to consumers' digital lifestyle and the bank policy of cost reductions," said Chookiat Rujanapornpaje, chief executive of Sabuy.
In the second development, Sabuy decided to buy 4,600 vending machines from Forth Vending Co, a subsidiary of SET-listed Forth Corporation, for 340 million baht. The deal will increase the number of the company's vending machines in service, which puts it at the forefront of this segment.
The third development concerns the company's decision to establish a joint venture with MAI-listed Forth Smart Service with a 50-50 investment ratio to operate vending machine maintenance and other new businesses in the future. The joint venture will have registered capital of 20 million baht.
Fourth, Sabuy agreed to buy 70% of the shares of The Letter Post Service, a postal service provider, from the existing shareholders for 42 million baht.
The deal, Mr Chookiat said, will help expand its parcel delivery business with another 750 new service branches.
The fifth development involves the company's decision to purchase 66% of the shares of M Point Express, a postal service operator, from the existing shareholders for 24 million baht. The deal adds another 800 branches to Sabuy's postal services.
The final development concerns Sabuy's decision to purchase 10% of the shares of A.T.P. Friend Services (Shipsmile) from the existing shareholders for 37.5 million baht, leaving Sabuy with 48% of the shares of Shipsmile, which sells franchises to entrepreneurs in both postal services and collection points for domestic parcel delivery from leading transport companies.
"These expansions will strengthen our ecosystem, both online and offline, enabling robust and sustainable growth for us," said Mr Chookiat.
Previously Sabuy formed a business alliance with SET-listed T.K.S. Technologies, a tech company, to pursue new innovations, including e-money, to respond to customers' needs in the digital era.
At present, Sabuy operates 57,000 top-up machines and 5,600 vending machines, as well as food court systems for 231 locations.
It also has 4,040 branches of Shipsmile shops and 170 shops of postal service Plus Express.
According to Mr Chookiat, the company targets investment of 1.5-2 billion baht for business expansion in 2022, with projected revenue growth of 50% next year.
Sabuy reported third-quarter revenue of 674.6 million baht, up 69.5% from the same period last year, with net profit reaching 56 million baht in the third quarter, a surge of 148% year-on-year.
Rising revenue was attributed to the expansion of top-up machines across the country and the roll out of e-payment services through 14 additional food court tenants, the company indicated.