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Plan B invested in BEM total of 20% stake of Bangkok Metro Networks, for manages commercial rights of the MRT with a 30-years concession

BackJan 26, 2019

Plan B Media Public Co.,Ltd. Invested total value of  262.2 million baht to purchase 20% of Bangkok Metro Networks Co., Ltd. (“BMN”), subsidiary of Bangkok Expressway and Metro Public Co., Ltd. (“BEM”) to  manages commercial rights for the MRT Blue Line. This partnership provides media and commercial spaces from various concessions that BMN operates, in term of MRT blue line extension, other MRT lines and new expressway, which will be auctioned in the future

Mr.Palin Lojanagosin, Chief Executive Officer of Plan B Media Co.,Ltd. revealed that the board of director approved the acquisition the share from BMN by 20%, the total value of the investment is  262.2 million baht. The source of fund came from internal cash flow in term of other group of shareholder, while BEM still hold 65.2% shareholding in BMN.

Mr.Palin said we are very pleased to invested in BEM, Plan B recognizes the potential of BMN as an strategic partnership and research possibility to invest in BMN since we collaborated in 2011, the synergy of both will mutually develop advertising media including opportunities to join business development efforts in managing commercial rights granted for projects under BMN; for example, the right to manage commercial space in MRT stations comprising: 1) Adverting media management; 2) Commercial space development; and 3) Information and communication system services. The opportunity from these commercial rights will add further value to the business in the near future, especially from route extension of MRT Blue Line increasing train numbers (from 19 to 54 trains), connecting more stations (from 18 to 38 stations) whilst increasing the distance of transit (from 20 kilometers to 47 kilometers) by 2020 according to MRT’s plan. Additionally, there are business opportunities from various mega projects, which will be develop in near future; for example, the new CBD on rama9 station, One Bangkok project by TCC, Mixed use project with value more than 1.2 hundred million baht located on Lumpini station, the Makkasan complex on Petchaburi station, the new bang sue grand station is the cross platform interchange station for the red line, blue line, purple line, airport link and other station from nationwide that will increase the number of passengers from 400,000 passengers per day to 1,000,000 passengers per day. This collaboration will allow both Plan B and BMN to commercially develop expressway projects including Sirat expressway and other expressway advertising concessions  in the future where BMN is a concessionaire. This initiative will help the Company target groups of expressway users of over 2 million people a day. With significant growth potential for businesses related to the MRT and expressways, the potential revenue opportunity for BMN is expected to be approximately THB 1,200-1,500 million per year.

In addition, the transformation of BMN business has a big jump in the past two year under operated by Mr. Nattavut Trivisvavet ( Managing director of BMN) is even more build the confidence to Plan B in term of commercial space development in order to serve modern urban lifestyle and present the Metro mall, which comprises of many stores in a variety of business which are well-known; for example, Starbucks, gourmet market, bread talk, Dunkin donut and café amazon that shows the potential on commercial space. In the future, the system in MRT is similar to leader city’s subway stations: for example, Tokyo, Singapore, Hong Kong. Including the potential on advertising media management, which modern media advertisement, presented with innovation that create brand awareness to products and services which has been good feedback .

Bangkok Metro Networks Co., Ltd. (“BMN”) is the subsidiary of BEM which, manages the commercial rights for the MRT Blue line and expansion line with more than 30 years contracts including opportunities to manages commercial rights in other MRT line and new expressway, which will be auctioned in the future. This investment also build the confidence to maintain the concession rights that received from BMN to remain the long-term contracts and gain more revenue from rail tail and new expressway in the near future

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