Spa declined to reveal the interested suitors, but said one was based in the UK and another in Japan. The agency has offered up to a 51 per cent stake, but insisted that control will remain local and the Spa prefix will be retained post-merger at the front of the new agency name.
Kitti Chambundabongse, Spa chairman and CEO, said: “We are at a turning point. Although we have the ability as a local agency to build our brand to a successful level and sustain it, my intention for the long-term future is to build something more secure for shareholders and staff.”
“The new partners need to offer true multinational accounts and big-spending clients in their business categories. Those accounts should be substantial, with total billings of more than 100 million baht (US$2.9 million).”
Osotspa subsidiary Spa Advertising split from the advertising department of its parent company 25 years ago to handle marketing communications and brand building activities for major Osotspa products. Spa’s Osotspa business now accounts for 30 per cent of its client portfolio.
While Spa also handles international clients such as Toshiba and Sun Micro Systems, these generate just five per cent of total billings. The agency received a blow when Nokia shifted its 450 million baht account out, and it has also lost its grip on McDonald’s in recent years.
