Thai out-of-home media provider Master Ad Plc (Maco) has agreed to acquire a 50 per cent stake in Hello LED for 1.95 billion baht ($64.6 million) in an attempt to become the country’s largest outdoor advertising network.
Hello LED has been in business for over 15 years, providing billboards in Bangkok’s central business district and other provinces. The company has 134 large billboards and 74 digital billboards throughout Thailand.
The investment in Hello LED will help improve Maco’s economies of scale and allow it to become the largest owner of outdoor advertising media in the country, the company said in a statement.
To fund the investment, Maco has also proposed a private placement worth 1.55 billion baht to PLANB Media, which will see the latter own 19.96 per cent of Maco upon completion of the transaction.
The transactions are expected to complete by December 2019.
In addition, Maco and PLANB will work together as strategic partners in a 3.5 billion baht, five-year management contract, in which PLANB will be the sole distributor for Maco’s outdoor media and pay back 85-90 per cent of the revenue.
Both Maco and PLANB are backed by out-of-home media service provider VGI Public Company Limited. Indonesian media conglomerate Emtek is also a PLANB investor.
Driven by high urbanisation and traffic in Bangkok, out-of-home ad sales in Thailand are estimated to grow by another 7 per cent in 2019, according to a report by Magna Intelligence and Rapport. The report projected that media owners’ net advertising sales would reach 15.1 billion baht this year, excluding cinema.