7th Oct 2014 06:42
LONDON (Alliance News) - The Mission Marketing Group PLC said Tuesday it has agreed to acquire a 70% stake in Singapore-based marketing services agency group Splash Interactive Pte Ltd for SGD600,000, equivalent to GBP300,000, payable in cash from its existing resources.
Mission Marketing said the consideration will by payable in cash instalments depending on the profitability of the business in the period to end-2017. The sellers of Splash will continue to manage the business; and Mission Marketing said the consideration fairly reflects the maintainable earnings of Splash over the longer term.
Mission Marketing's Bray Leino business in the Asia-Pacific region will be rebranded as Bray Leino Splash with immediate effect, and the company is already planning a similar move for other agencies.
Splash posted an underlying pretax profit of SGD64,000 on revenue of SGD5.0 million in 2013. It has offices in Singapore, Shanghai, Hong Kong, Malaysia and Vietnam, and works with local and multi-national banks, according to Mission Marketing.
"The synergies are unlimited, and we believe that with the help and resources of Bray Leino and Mission we can develop our business far quicker than would be the case on our own. We are already working with Bray Leino, and the results of those projects have been most encouraging," said Splash Chief Executive Lee Kuok Ming in a statement.
The company also raised GBP2.4 million through a placing of 5.7 million new shares at a price of 42 pence per share, which it will use to fund future acquisitions and for general working capital purposes. Mission Marketing shares closed Monday at 41.13p.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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