Tom plans to acquire outdoor ad agencies in three markets next year, Tom Outdoor Media Group president, Li Jian told Media at the International Advertising Association conference in Beijing. "The working committee has been set up and is looking at target companies. By June 2005 we will have finished the first initial investigation," he said.
"Our priority is Hong Kong, Macau and Taiwan. Over the past three years, we have gained a lot of experience in mergers and acquisitions. Our corporate strategy has provided us with valuable experience in China and I believe that can be applied to other markets in the future."
Other markets the group is exploring for expansion include Malaysia, Thailand, Korea, India, Singapore and Australia. Tom Outdoor is also seeking to establish up to eight new franchise networks in China. Li added: "China is still the primary market and the foundation for the business is in Beijing, Shanghai and Guangzhou. In terms of franchises for outdoor companies in China, we have 12 subsidiaries and are targeting 18 to 20 by December 31, 2005. These will be joint cooperation not acquisition.
"These franchises will allow us to reduce costs of mergers/ acquisitions, and we have the production system and expertise in place to train franchisees, who can benefit from the Tom Group branding."
Tom maps outdoor M&A strategy
The Tom Group has set up a working committee to investigate merger and acquisition opportunities of outdoor advertising companies in Asia-Pacific, according to a senior official of the group.