Company chief executive Poonphiphat Tantanasin  said that the firm plans to add  more international sales agents to back its expansion  into overseas markets.

The company currently has a backlog worth Bt530 million, for which distribution started earlier this year. As for its business as the distributor of De Busduct and Smart Transformer and Super low loss transformer products, the sales are  expected to help achieve its targeted annual revenue of around Bt1 billion.

Poonphiphat said the company started to adjust its business strategies early in 2019 in order to strengthen the business.

The strategic business adjustment plan has helped the company to meet its target. For the first six months of 2019, revenue was Bt502 million, up 24 per cent from the same period of last year.

Poonphiphat said that regarding the business outlook in the second half of 2019, the company has already begun exporting electricity transformers to Japan, Australia and some other countries but it plans to expand to tap more countries in Asia and Europe.

“Clearer direction is expected soon, especially for the government projects. The demand for electricity transformers is expected to increase in line with the government’s policy driven by Eastern Economic Corridor (EEC) and Skytrain projects.

The company has also reorganised its business structure with the closure of magazine and magazine businesses, and has stopped film production under its T Moment company.

Mono said revenue in the second quarter was Bt613.74 million, down Bt82.59 million, or 11.86 per cent, from the second quarter of last year.

The business group showing the highest decline in revenue is mobile phone services. This group had been divided into entertainment information, such as fortune telling via mobile phones, which posted a 73.55 per cent decline from the same quarter of last year.

Another mobile phone service, Monomax movies on mobiles, showed growth of 27.81 per cent in the second quarter of this year to Bt22.93 million.

However, the company’s overall performance in providing content through mobile phones dropped 73.55 per cent to Bt34.74 million in revenue.

Mono achieved 8.23 per cent growth in revenue at its Mono digital TV business, which earned Bt528.30 million in advertising in the second quarter of this year, up from Bt488.13 million posted in the second quarter of last year.

Mono also reported that the company has reduced its cosst by closing some non-performing businesses: the Mono Play game on mobile, Gossip Star magazine and pocket books.

The company reduced the size of mobile value added service (MVAS) in Thailand, as well as stopped film production under the T Moment company.

T Moment is a 50-50 joint venture between Thai Entertainment and Mono with Bt200 million in registered capital.

The merger, which is expected to be completed by mid-2021, involves the purchasing of shares by both banks as well as by third party participants such as the Finance Ministry.

The total value of the deal is expected to approach Bt160 billion, involving the use of Bt130 billion by TMB to purchase TBank’s shares and Bt44 billion by Thanachart Capital to buy TMB’s shares.

After the deal is completed, the two banks will merge as one and will have remaining capital for investment of around Bt80 billion, according to executives from both banks.

The remaining capital after the merger will be used for further investments to maximise benefits for the bank’s clients and shareholders, said the chairman of the executive board of director of TMB, Philippe Damas, who declined to comment on the specifics of the investment plans.

“Currently, we are focused on making sure that the merging process goes smoothly and we will have to digest this large transaction before looking into the details of the investments after the merger is completed,” Damas said at a press conference held by the two banks on Friday.

Also present at the press conference was Chumpol Rimsakorn, deputy permanent secretary of the Finance Ministry. He said the ministry will invest an additional Bt11 billion and could also purchase more shares in the future.

“The Finance Ministry has set aside an investment budget for this merger and we guarantee that the investment does not jeopardise the government budget in any way,” he said.

The merger is widely seen as part of a larger market trend in the financial sector, which has been challenged by the digital disruption changing consumer behaviour.

Banks have been trying to streamline their operations in order to focus on traditional financial businesses.

In July, Siam Commercial Bank Plc (SCB) sold 99.2 per cent of its holding in SCB Life Assurance Plc for Bt92.7 billion to FWD Group Financial Services Plc (FWD), in a move to raise investment capital and focus on its core banking business.

However, TBank and TMB stated that this merger is not a streamlining process and guaranteed that there will not be any employee layoffs.

“The merging of both banks will mean that the client size will double and the resources needed to serve our clients will increase,” said Suphadej Poonpipat, chairman of the executive committee at Thanachart Capital (TCAP).

Hence, he said, there will be no layoffs resulting from the merger. However, after the merger is completed, some branches of the two banks that are overlapping in various areas may have to be closed, he said.

Currently, the two banks have a total of 900 branches and 19,000 employees.

In the new shareholding structure, Thanachart Capital (TCAP) will hold 20 per cent of the shares, followed by ING Bank, which acquired TMB in 2008, with 21.3 per cent. Of the remaining shares, the Finance Ministry will hold 18.4 per cent, Scotiabank (BNS) 5.6 per cent and minority shareholders 34.3 per cent.

After the two banks have been merged, their combined asset value will be Bt2 trillion with the single entity having 10 million customers and 19,000 employees, said Suphadej Poonpipat, chairman of the executive committee at TCAP, at a press conference held by the two banks on Friday.

During the merger process, shares will be transferred in accordance with the law, involving the equity fund raising through the issuance of new common shares and debt financing by TMB, said Piti Tantakasem, CEO of TMB Bank.

As part of the process, TMB will have to raise around Bt130 billion in order to purchase TBank’s shares. To do so, TMB plans to raise Bt42.5 billion by issuing new common shares. TMB will also raise Bt9.6 billion to Bt16 billion through debt financing to foreign institutional investors, said Piti.

TCAP is set to buy TMB shares worth Bt44 billion. Suphadej said that after the purchase, TCAP will have remaining capital of Bt10 billion. The management team of TCAP will manage the fund to generate further returns for its shareholders accordingly, he said. Suphadej declined to reveal details of the investment plans.

Both banks guarantee that clients will be unaffected by the merger and that they can continue to use the services of both banks until 2021. After that, clients will be able to continue using services from the new merged bank, and will have additional service options.

CK Power (CKP) has booked revenue of Bt2.312 billion for the last reported quarter, marking growth of more than 17 per cent from the same period of last year.

The growth was driven mainly by expansion in revenue from the Nam Ngum 2 Hydropower Plant (NN2), as well as from the three rooftop solar power plants that began operating during the quarter, said Thanawat Trivisvavet, managing director of CKP.

The company posted net profit of Bt 83.7 million, up 26.5 per cent from the same period last year, despite the shutdown of Bangpa-In Cogeneration 1 Power Plant for maintenance.

CK Power completed the acquisition of an additional 5.33 per cent stake in Southeast Asia Energy Limited with total investment of Bt 681.5 million in May, which resulted in CK Power increasing its effective ownership of NN2 from 42 per cent to 46 per cent.

Moreover, from May to July, CK Power began operating four rooftop solar power plants. Banglen Solar in Nakhon Pathom province (0.97 MW), Putthamonthon Sai 5 Solar in Nakhon Pathom province (0.97 MW) and Mahachai Solar in Samut Sakhon province (0.72MW) were all completed in the second quarter. The Krathum Ban Solar in Samut Sakhon province (0.52 MW) was completed in July.

CKP engages in the production and sale of electricity generated energy. The company has stakes in 13 energy projects including two hydroelectric power projects, the Nam Ngum 2 Hydroelectric Power Plant, operated by Nam Ngum 2 Power Limited and the under-construction Xayaburi Hydroelectric Power Plant, to be operated by Xayaburi Power Company Limited.

The Stock Exchange of Thailand (SET) will also lift the ‘C’ sign (Caution) on NBC on August 13.

For the first six months of this year, the group reported Bt444.47 million in net profit, up 753 per cent against Bt68.10 million losses during the same period last year.

Chatchai Phukokwai, NBC managing director, informed the SET that the company had benefited after the National Council for Peace and Order (NCPO) passed order No 4/2562 to solve the problems of the TV and telecommunication operators.

The measure exempted the company’s subsidiary from payment of licence fee instalments, including a subsidy for the network rental expenditures in accordance with a national commercial digital terrestrial television broadcasting network service to licensees over the remaining period of the licences. The subsidy effectively commences after termination of the measure fore relief in accordance with paragraph one, No 8 of NCPO order No 9/2561.

The subsidiary recorded a reduction in its net book value of digital television licence fee payable and net book value of the licence amounting to Bt429.91 million (the digital television licence payable of Bt447.20 million and deducted deferred interest amounting to Bt17.29 million) and adjusted amortisation from the remaining net book value of the licence after adjustment in relation to the remaining economic useful life. Therefore, the group is reversing impairment of loss of digital television licence of Bt486.70 million in the consolidated financial statements for the six-month period ended June 30.

The group reported that six-month operations ended on June 30 this year represented an operating profit of Bt444.48 million compared to the same period last year when it reported a loss of Bt68.10 million. Excluding the reversal of impairment loss of assets of Bt486.70 million, the group’s net loss for the six months of this year rose to Bt42.22 million.

The brand has launched its first beauty concept store “Wuttisak Beauty Station”, introducing “Magic Collection” with K-pop sensation Cha Eun-woo as new brand presenter.

WCI Holding Pcl, the operator of Wuttisak Clinic, has invested more than Bt100 million to revamp its business by setting “Wuttisak Cosmetics” in motion to expand into the total beauty solutions provider market.

The Beauty Living brand is set to launch its new distribution channel in the form of the first and flagship pop-up concept store “Wuttisak Beauty Station” at Rajdamri BTS Station on Friday (August 9), while launching the inaugural “Magic Collection” with Cha as endorsement model.

WCI Holding’s CEO Gwyn Sundhagul expects sales from Wuttisak Cosmetics to reach Bt1 billion within three years.

“The company has been focusing on proactive efforts to recoup business and driving the Wuttisak brand towards becoming a leader in Thailand’s beauty market,” said Gwyn.

“Earlier this year, we set aside a Bt10-million budget to sponsor Miss Universe Thailand 2019 and another Bt20 million for the relaunch activities of ‘Snail 8’, which is the snail-mucus-based product brand under WCI Holding,” Gwyn said.

Wuttisak Cosmetics is largely structured into two main business units: products of the company’s own brand, and others for which Wuttisak acquires exclusive rights through selected partners.

“Wuttisak Cosmetics has debuted its own line of products called ‘Magic Collection’ which, as of now, consists of shower gel and body lotion products in four formulas. It also has Wuttisak Selects which includes a product portfolio that Wuttisak acquires through exclusive partnerships, such as cosmetics, skincare and functional foods. To ensure that Wuttisak can continuously address the various needs of consumers, we also plan to develop and launch several new products through other collections in the future,” said Gwyn.

Niwat Daoloy, CEO of Wuttisak Cosmetics Inter Co Ltd, revealed, “The first Wuttisak Beauty Station is located on a 157-square-metre area inside Rajdamri BTS Station in downtown Bangkok. The BTS has been arranged into many spaces which will be used to display and provide products and services for the target groups in a convenient manner while appealing to consumers who are looking for a modern, creative and unique experience that is different from beauty shops or clinics in general.”

The company’s second-quarter revenue of Bt463 million from sales and services represented a 3-per-cent increase over the same period of last year. Net profit was Bt14 million, with a 3 per cent net profit margin, a decrease of 50 per cent from the previous year.

Major contributors to the net profit drop were increased employee benefits costs under the new labour law, a one-time expense for relocation of the sales office, and the strengthening baht which has resulted in both lower gross margin and loss on exchange.

The company’s business plan for the second half of 2019 is to focus on an expansion of the integrated prescription lens business, which offers a high gross margin, as well as a focus on major customers in Europe, the Middle East and Africa. Orders from these new accounts will fulfill the manufacturing capacity under the “RX Automation” phase two investment, which will commercially commence operations in the first quarter of 2020.

The company receives the positive feedback from the “z design” series of new progressive lens products series, which was launched earlier this year. The company has plans to continuously launch new products, including a new premium lens coating in early 2020, said Torn Pracharktam, chief executive officer of Thai Optical Group Plc.

The strong performance growth resulted from the financial statement merging of Trans Ad Solution Co Ltd and Roctec Technology Ltd in August 2018,

Meanwhile, revenue from the full cycle services was at Bt428 million, including the revenue from advertising media services at Bt261 million, the company’s chief executive officer Phoon Chiong Kit said today (August 8).

He added that in the past quarter, MACO launched street furniture advertising media services in the areas under the poles at newly renovated BTS stations in June.

Furthermore, 42 screens of MACO’s BTS street-view digital and 180 screens of MACO’s BTS street-view light boxes have been renovated. The company expects that the outstanding quality and efficiency of this new type of media will drive further revenue increases for the company.

In a recent development, MACO has prepared to increase the proportion of its investment in Puncak Berlian Sdn Bhd (“PBSB”) to 65 per cent, with hopes of an August completion.

The increase would help the company to fully control and manage f PBSB thus, enabling an increase in future sales through the PBSB media network, as well as developing efficient overseas market channels, he said.

Moreover, PT Avabanindo Perkasa (“Otego”), a sub company of MACO in Indonesia, has already kicked off advertising media services at Jakarta’s MRT system, while the areas of static picture advertising media have totally been reserved in 13 stations.

The company’s situation outside the country could trend toward improvements in the second half of 2019.

The CEO added: “From the above-mentioned situations, the company still targets revenues this year with growth at 30-35 per cent, or between Bt2.3 billion and Bt2.4 billion, whereas we can see long-term growth amid the challenges in the overseas market.”

The company still foresee good business opportunities in the Asean region, in which rapid growth is possible. We expect that the business strategy in the overseas market would be the main issue to enhance the strength of MACO, he said.

This investment will drive the company to achieve another milestone on its journey of planned growth into segments of Integrated EOs and the Specialty Chemicals portfolio.

Huntsman is a global leader in integrated Oxides (EOs) and Derivatives (EOD), operating a large, well-invested site on the US Gulf Coast (USGC) as well as in India and Australia.

This acquisition reinforces IVL’s Integrated EOs and Specialty Chemical segment’s growth trajectory and includes sought after value-added EODs and Propylene Oxide Derivatives.

The transaction will broaden IVL’s expertise of operating USGC Integrated Oxides facilities through operational excellence, differentiated formulations and technologies.

The purchase price is based on an enterprise value of US$2 billion and up to US$76 million in pension obligations, which corresponds to an EV/EBITDA multiple of 5.7. The deal accelerates IVL’s ability to achieve its stated goal to double its core EBITDA by 2023.

This acquisition is a profitable, resilient and growth business and is not competing in the otherwise crowded olefins space. It comes at less than 50 per cent of its replacement cost. It is a game changing acquisition for IVL, its largest ever and one of the biggest by a Thai company in the last decade.

The deal is earnings accretive within the first year of full operations. Synergy benefits will further boost EBITDA contribution from these assets by additional US$100 million annually by 2022. On a proforma basis, this acquisition adds 25 per cent to IVL’s 2018 core EBITDA

IVL’s group chief executive officer Aloke Lohin said that this acquisition squarely fits into its growth segments of Integrated EOs and the Specialty Chemicals portfolio. The assets being acquired from Huntsman represent leadership in EO and PO derivatives, achieving additional revenue of $2.0 billion and an EBITDA margin of 18 per cent in 2018.

With this strategic acquisition IVL has a balanced portfolio of scale businesses, co-related and integrated, in global niche markets of defensive industries serving consumers daily needs and growing at around 5 per cent.

The transaction will be funded by internal cash flows and debt financing and does not necessitate equity dilution. The nature of IVL’s business model enables it to achieve visible, diversified and steady cash flows making it a unique world-class chemical company. This acquisition further enhances this uniqueness.

The transaction is expected to be completed by the fourth quarter of the year 2019, subject to regulatory approvals.

“This acquisition is a momentous propellant in our journey towards our stated goal of being a global, diversified chemicals company with multiple, and related earning streams. I am excited by this acquisition since it encompasses and has a straight fit to all the values and strategic intent that we have incorporated in the IVL model; serving high growth markets, resilient and defensive industry, integrated assets serving the value chain downstream, competent and passionate management, and proprietary technology and Intellectual property.,” he said.

He added that the combination of its two integrated EO assets, primarily used in captive production of EO & PO derivatives, will boost earning streams and strengthen the company’s position with existing and new customers.

“I am confident that this important business will drive value for all our stakeholders and underpin IVL’s earnings growth opportunities for years to come,” Lohin said.

Peter Huntsman, Huntsman’s chairman, president and chief executive officer said that they will be acquiring a strong EO/PO derivatives business with a very experienced workforce and management team. This is also a transformational opportunity for Indorama Ventures that provides them with hundreds of product grades and thousands of customers.

“Our Company looks forward to further developing a long-term relationship with IVL. I not only value this relationship, but the personal trust and friendship I have developed with Aloke Lohia.”

The Valence Group acted as exclusive financial adviser to Indorama Ventures. Legal advice was provided by Lowenstein Sandler and KPMG provided financial due diligence support.