Plan B Media Public Company Limited (SET: PLANB) has announced two transactions that will see the company booking a consideration of THB 300 to 500 million from providing management to VGI and securing additional 178 billboards in Bangkok.
The company has disclosed a letter through the Stock Exchange of Thailand, stating that the Board of Directors of the company will propose two agenda to its shareholders to approve these following transaction:
1) The execution of the Advertising Media Management Agreement with VGI Public Company Limited (SET: VGI), which agrees to grant the company the rights to sell and marketing all advertising media of the VGI group in Thailand for a period of approximately 5 years. The estimated consideration for the term is approximately THB 300 to 500 million.
2) The purchasing of all 1,000,000 ordinary shares of Hello Bangkok LED Company Limited (Hello LED), representing 100 percent of the total sold shares, from the existing shareholders, for a total value of THB 4,000,000,000.
The company will acquire 500,000 shares, representing 50.00 percent from Roctec Global Public Company Limited (SET: ROCTEC), 499,999 shares, representing 49.99 percent from Win Harvest International Limited and 1 share, representing 0.001 percent from an individual shareholder.
At a total value of THB 4,000,000,000 for this transaction, the company will pay approximately THB 1,000 million in cash and approximately THB 1,000 million in newly
issued shares of the company to Win Harvest. Meanwhile, ROCTEC declined to receive newly issued shares, thus, PLANB has resolved to raise a capital by issuing 143 million shares to VGI with a par value of THB 0.10 per share at an offering price of THB 7.00 per share for additional THB 1,000 million. A total of THB 2,000 will be paid to ROCTEC.
Noted that this transaction is classified as a connect transaction as Roctec, a seller of Hello LED shares, is majority-owned by BTS Group Holdings Public Company Limited (SET: BTS) and Win Harvest, another seller of Hello LED shares, is wholly owned by an immediate relative of the director and managing director of PLANB.
The transaction process is expected to be completed by the second quarter of this year.
Plan B Media is a leading out of home media serviced provider with the most diversified portfolio of media in Thailand as well as ASEAN region, who offers outstanding formats and various sizes of media located in strategic places, catching the eyes of all target groups anywhere and anytime.
VGI is the leader in designing pioneering solutions to meet the demands of advertisers and brands and create unique experiences for consumers through its complete ecosystem, spanning across Advertising, Digital Services and Distribution businesses. VGI also strives to build a sustainable business for all stakeholders, including society and the environment.
