SET Announcements

SET-listed : VGI announced the acquisition of Rabbit Business from the BTS group. The Rabbit Business is a key piece for VGI to become a “Data-Centric Media Hypermarket” or “DCMH,” by enabling VGI to utilize data analytics capabilities of Rabbit to aid in the creation of an innovative media service offering through effective audience targeted media services. Furthermore, this will also enhance the expansion of online media services in response to consumers’ lifestyles in the digital age, broadening VGI’s consumers’ reach to 25 million persons per day and boosting media revenue production capacity from THB 3,900 million to THB 7,300 million

Mr Surachet Bamrungsuk, Chief Executive Officer, VGI Global Media Public Company Limited (VGI), revealed that the board of directors’ meeting has resolved to approve the acquisition of 90% of the shares in Bangkok Smartcard System Company Limited (BSS) and 90% of the shares in BSS Holdings Company Limited (BSSH). The investment in BSS and BSSH will require the total funding of THB 1,956 million. Through this acquisition, VGI will enter into an e-payment business that provides Rabbit Card as a payment tool for traveling on the BTS Sky Train and for purchasing merchandise from leading retailers countrywide. Additionally, VGI acquires an e-wallet business through Rabbit LINE Pay, a function embedded in LINE application (which is the most popular instant messaging platform with over 33 million active users in Thailand), this will enable users to purchase merchandise from online and brick-and-mortar retail stores with future plans to extend the service to cover online payment for BTS Sky Train fares and retail purchases within Rabbit Card’s merchants network nationwide through their mobile devices. Moreover, Rabbit Business also consists of other online businesses operated by Rabbit Internet, including Rabbit Daily which provides lifestyle content through a web portal, and Rabbit Finance which is a licensed, leading online financial products comparison website previously known as ASK Hanuman.

“This investment is VGI’s strategic move to completely revolutionize the traditional way of advertising by raising the effectiveness and measurability of advertising campaigns. By utilising Rabbit Business’ database, which currently has more than 7.2 million users, to conduct data analytics to support VGI’s sales, media production and planning to ensure clients benefit from a nationwide data-driven media network. Furthermore, this will open new doors for VGI to spur innovations that aim to synchronize with the digital lifestyle of modern people.” Said Mr. Surachet

Currently, VGI manages media on BTS Sky Train stations, trains, office buildings, residential buildings and airports. The recent acquisition of shares in MACO has allowed VGI to consolidate and further expand its out-of-home media network. Mr. Surachet mentioned that although the company spent nearly THB 3,000 million in a series of acquisitions this year, the business is expected to further expand and restructure to continuously cater to the modern lifestyle of consumers.