KUALA LUMPUR (Feb 20): Out-of-home media specialist Seni Jaya Corp Bhd (KL:SJC) is acquiring Unilink Outdoor Sdn Bhd and Vision OOH Sdn Bhd — both of which operate within the same outdoor advertising industry — as part of plans to broaden its media network, particularly in high-impact locations, and reinforce the group’s digital transformation strategy.

"The proposals are expected to expand the company’s customer base, improve its product offering and create operational synergies between the company, Unilink and Vision. The company’s integration with Unilink and Vision will also strengthen bargaining power with suppliers and contractors, thereby enhancing future profitability," Seni Jaya said in a filing with Bursa Malaysia on Thursday.

Seni Jaya also said it has entered into two separate heads of agreements (HOAs) for the proposed acquisitions. The first is with Unilink executive director Ong Kah Hoe and his brother Ong Kah Wee for the proposed acquisition of Unilink, which will be satisfied via cash and issuance of new shares in SJC at an issue price of 31.6 sen per share. Kah Hoe is also the executive director and a major shareholder of SJC, directly owning a 6.23% stake and an indirect 4.5% stake through OCR Group Bhd (KL:OCR) and OCR Land Holdings Sdn Bhd.

The other HOA is with Lawrence John Cannard and Chong Yan Moy for the proposed acquisition of Vision, which will be fully satisfied via the issuance of new SJC shares at an issue price of 31.6 sen per share.

The issue price of 31.6 sen per share was arrived at based on the five-day volume-weighted average market price of SJC shares as at Feb 19, being the last trading day prior to the execution of the Unilink and Vision HOAs.

However, the proposed acquisitions are still subject to a due diligence exercise on Unilink and Vision and the execution of definitive agreements.

"The final purchase considerations will be determined later based on further negotiations and valuations," said Seni Jaya.

The proposed acquisitions are also subject to approvals being obtained from shareholders of Seni Jaya at an extraordinary general meeting to be convened. Inter-Pacific Securities Sdn Bhd has been appointed by the company to act as the principal adviser in relation to the proposals.
 
In view that the proposed Unilink acquisition is a related party transaction, Seni Jaya has appointed BDO Capital Consultants Sdn Bhd as the independent adviser to advise the minority shareholders.

“This strategic move aligns with our vision to further enhance our presence in the OOH advertising landscape, particularly in prime locations across Malaysia. The proposed acquisitions of Unilink and Vision will not only expand our media asset portfolio but also create synergies that will strengthen our market position and enhance future profitability. As digital adoption accelerates, integrating these companies into our operations will reinforce our ability to deliver cutting-edge, data-driven advertising solutions to our clients,” said Seni Jaya chief executive officer Jeff Cheah See Heong in a separate statement.

“With the proposed acquisitions, Seni Jaya will be well-positioned to leverage high-traffic advertising assets and further expand our presence in key urban locations. We remain committed to driving innovation, digital transformation, and data-driven advertising solutions, ensuring long-term value creation for our stakeholders,” he added.

Seni Jaya shares closed at half a sen or 1.54% higher at 33 sen, giving it a market capitalisation of RM69.3 million. The stock has risen 10% so far this year.