Plan B to acquire AQUA units for B2.9bn

Pictured from left are: Mr Pinijsorn, Mr Palin, Mr Shine and Pakorn Mongkoltada, AQUA’s chief executive of operations.

SET-listed Plan B Media, an out-of-home (OOH) media company, is to acquire media businesses from Aqua Corporation Plc (AQUA) for 2.9 billion baht in order to gain a strong leading position in the segment.

Plan B’s board on Tuesday approved the acquisition of two AQUA subsidiaries — Aqua Ad Plc (AA), which makes signs, billboards and advertising media — and Boardway Media Co (BWM), which provides billboard rental services. The acquisition plan was reported to the Stock Exchange of Thailand yesterday.

“Our board approved the 100% acquisition of advertising business from AQUA worth 2.9 billion baht, using our company’s cash flow,” Pinijsorn Luechaikajohnpan, managing director of Plan B, said at a news conference yesterday.

Plan B will also allocate 84 million newly issued shares for sale on a private placement basis to AQUA, worth 606 million baht in total, he said. The offering price is 7.22 baht per share.

According to Plan B’s statement, the company expects to enter into a share purchase agreement with AQUA this month, with the transfer of ownership expected to be completed in March.

Mr Pinijsorn said Plan B’s investment will add the advertising media of AQUA at 400 sites and 150 LED displays. About 700-800 million baht in extra revenue can be expected from the investment.

Having AQUA’s advertising business will fulfil Plan B’s OOH media segment, covering mass transit locations, billboards and digital advertising, department stores, supermarkets, convenience stores and airports, he said.

Palin Lojanagosin, chief executive of Plan B, indicated that the company will make up 70% of the country’s overall OOH media, driven by a series of acquisitions, including Hello Bangkok, Master Ad Plc, Co-Mass and MultiSign, as well as the latest investment in AQUA’s subsidiaries.

“We will clear out duplicate boards and make the landscape beautiful,” said Mr Palin.

Ad packages will be redesigned in line with the visibility prospect. “We use magnetic tools by working with mobile operators to calculate people’s density or traffic in advertising locations,” said Mr Palin.

According to Mr Palin, in the next three years the company aims to achieve 10 billion baht in revenue, of which 50% would come from the OOH media segment and the rest from new businesses.

OOH currently accounts for 80% of the company’s revenue.

Plan B expects to attain 5.8 billion baht in revenue this year, supported by earnings from advertising media at 7-Eleven stores, sports marketing, international broadcasting, combat sports, football and e-sports.

“Sports are one of the growth areas as users watch live broadcasting,” Mr Palin said.

“OOH has a growth opportunity as users spend 10-14 hours outside. If Covid-19 is under control, media spending is expected to bounce back.”

Plan B and its network have a 10% market share in Thailand’s advertising industry.

Shine Bunnag, acting president of AQUA, said the deal would turn a rival into a partner.

AQUA will sell AA and BWM as well as its OOH brand Starlet to Plan B, and AQUA will take up 2% of the shares of Plan B, he noted.

AQUA still has another two businesses to pursue, covering warehouses and renewable energy. “We will use new capital to invest in new business related to innovation,” Mr Shine added.