RS budgets 700-800 million baht in preparation for acquiring more M&A deals within mid-year. Following the investment in Chase Asia to advance in asset management and debt collection, RS expects to book 77 million baht of profit-sharing from this acquisition in 2021, and plans to list Chase Asia on the stock market as soon as 2022. Also, RS expresses confidence that this year earnings will make an all-time high of 5,700 million baht.
Mr. Surachai Chetchotisak, Chairman of the Board of Directors of RS Public Company Limited (RS), said that in 2021, RS planned to invest 700-800 million baht for M&A, expecting to complete 2 deals within mid-year. RS will focus on businesses or partners that would support the company’s ecosystem and its key business “Entertainmenrc”.
Recently, RS made a move, through its 99.99%-owned subsidiary RSX Co., Ltd., to acquire 2,744,773 newly issued ordinary shares or 35% of total registered capital of Chase Asia Co., Ltd. (Chase) in a total amount of 920 million baht.
The investment in Chase will pave the way for RS in non-performing asset management and providing loan businesses, creating a horizontal growth and expanding the opportunities for RS in Entertainmenrc business. In the meantime, this partnership will enhance Chase group’s capability to become one of leading companies within 2 years, smoothing the way for Chase to be listed on SET.
Mr. Surachai added that RS estimated the internal rate of return (IRR) from this investment at 17.2% and profit-sharing will be 77 million baht this year. Moreover, the company targeted the 2021 net profit to reach a record high of 5,700 million baht from a contribution of commerce business accounting to 4,000 million baht, and media-entertainment business, while projecting a gross profit margin of 50-52% and net profit margin of 12-14%.