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KUALA LUMPUR (Sept 22): Out-of-home media player Seni Jaya Corp Bhd (0.435 +0.010)sw (KL:SJC) entered into a deal on Monday to acquire Ganad Media Sdn Bhd (GMSB) in a move to expand its advertising footprint.
The purchase price of RM5 million will be settled via RM3 million in cash and RM2 million through the issuance of 4.95 million new Seni Jaya (0.435 +0.010)sw shares at 40.4 sen per share, said Seni Jaya (0.435 +0.010)sw in a filing with Bursa (8.05 +0.010)sw Malaysia.
The acquisition agreement was signed by its wholly owned unit, Seni Jaya (0.435 +0.010)sw Sdn Bhd, with vendor Dwi Mewah Sdn Bhd.
Ganad Media, which is loss-making, provides outdoor advertising and display materials, with a portfolio of about 60 billboard sites across the Klang Valley, Perak, Penang, Kedah, Pahang and Terengganu. Its formats include LED billboards, freestanding panels, minipoles, metropanels, unipoles, overhead bridge billboards, rooftop displays, lightboxes and wall-mounted panels.
Ganad Media posted a wider net loss of RM73,000 for financial year 2023 versus RM66,000 a year earlier as revenue slipped to RM4.7million from RM5.96 million, according to Seni Jaya (0.435 +0.010)sw.
Nonetheless, Seni Jaya chief executive officer Jeff Cheah See Heong said the acquisition is a strategic move to strengthen the company’s market position by tapping into Ganad Media’s strong reputation and established client base.
“By combining our expertise, we aim to deliver even more impactful advertising solutions and unlock synergies that will elevate our market position.
“Ganad Media’s portfolio, particularly its landmark sites in Kuala Lumpur, will complement our existing assets and create a stronger, more diversified platform for clients. This move is not only about expanding scale, but also about elevating the quality and impact of our out-of-home offerings,” he said in a statement.
Seni Jaya (0.435 +0.010)sw said the 40.4 sen per share price was set on a willing-buyer willing-seller basis, referencing the five-day volume weighted average price of its shares up to Sept 19 of 41.5 sen.
The board deemed the price fair, noting that settling part of the purchase consideration via shares strengthens the group’s asset base without an immediate cash outflow compared to a full cash settlement.
As at-end June, Seni Jaya (0.435 +0.010)sw had cash and cash equivalents (comprising cash and bank balances as well as short-term deposit with a licensed bank) of RM12.85million.
Shares of Seni Jaya (0.435 +0.010)sw closed up half a sen or 1.2% at 42 sen on Monday, giving the company a market capitalisation of RM88.62 million.
Indonesia