Plan B Media Public Company Limited (SET: PLANB) has announced that the Board of Directors have approved the investment in Aqua Ad Public Company Limited (AA) and Boardway Media Company Limited (BWM), which are engaging in an out-of-home media business, by the company and/or its subsidiaries.
The acquisition will be proceed by acquiring all shares in AA and BWM from the Aqua Corporation Public Company Limited (SET: AQUA) and the current shareholders of AA and BWM, with a total purchasing price of approximately THB 2,882 million that consists of (a) the purchasing price in cash of approximately THB 2,532 million (b) the Net Working Capital of the business of approximately THB 110-130 million, and (c) the right to use the company’s advertising materials to AQUA for a period of 10 years from the date of transfer of ownership for THB 220 million shares.
The company expects to enter into a share purchase agreement with AQUA within January 2022 and the purchase of shares is expected to be completed within March 2022. After the transfer of ownership of the purchased shares, AA and BWM will become subsidiaries of the company.
The acquisition in two of AQUA’s companies will mitigate the risk posed by the inadequacy of billboards in prime locations for business expansion. This will improve the company’s ability to expand its out-of-home advertising media service across the country, allowing it to provide more coverage in more areas and support more customer services. It also broadens the range of out-of-home advertising media services, allowing customers to better plan advertising media and meet with their needs.
Moreover, the acquisition of additional billboard ownership is consistent with PLANB’s growth strategy of increasing the competitiveness of the advertising media and related businesses. It aids in the growth of the business, improves the company’s performance, and generates long-term and sustainable returns for shareholders. Additionally, the acquisition will provide adequate returns and help the company meet its financial goals.
In the meantime, the Board of Directors of AQUA has announced that a resolution was passed to approve the purchase of 84 million newly issued ordinary shares with a par value of THB 0.10 per share in PLANB at the offering price of up to THB 7.22 per share or up to THB 606.48 million in total by the company and/or its designated subsidiary(ies), where the offering of the PLANB Newly Issued Ordinary Shares at such offering price constitutes an offering of shares at a discount of more than 10 percent of the market price of PLANB’s ordinary shares traded on the SET for a period of not less than seven consecutive business days but not more than 15 consecutive business days prior to the date on which its board of directors resolved to propose the offering for approval at the general meeting of shareholders.
