August 09, 2014 01:00 By Watchiranont Thongtep The Nat
VGI Global Media, a leading provider of transit media, is reportedly set to acquire shares of Tong Hua Communications and a subsidiary of Aqua Corporation as part of its business expansion to outdoor media services.
News of the move emerged after Global Media and Tong Hua Communications and another listed company Aqua Corporation requested the Stock Exchange of Thailand temporarily suspend trading their securities yesterday because the firms were in the process of disclosing significant information.
The companies convened a meeting of their board of directors to consider important information which may have an impact on their securities prices and affect the investment decision of their shareholders and investors.
On July 29, Tong Hua Communications reported to the SET that it was in talks with VGI Global Media about the take-over and the potential deal was undergoing analyse.
In the same statement, Tong Hua Communications acting president Thitisak Skulkroo said the company’s board of directors would be asked to consider the acquisition.
VGI Global Media has an aggressive plan to expend its business into outdoor media. The company also wants to acquire a subsidiary of Aqua Corporation which manages outdoor media.
It is believed that the subsidiary might be Aqua Point.
VGI Global Media recorded revenue of Bt3.17 billion and a net profit Bt257.28 million in the first quarter of the fiscal year (April 2014-March 2015).
Aqua Point manages 140 billboards throughout the country. Most of those are in prime areas in Bangkok. Tong Hua Communications is the publisher of the Dao Siam Thai-language newspaper and the Tong Hua and Jin Jie Yit Pao Chinese-language newspapers.
Tong Hua recorded revenue of Bt900.74 million and a net loss of Bt3.02 million in the first quarter this year.