Ancom JV firm bags 10-year MRT advertising concession

PETALING JAYA: Ancom Bhd’s joint venture (JV) company Titanium Compass Sdn Bhd has been awarded a 10-year advertising concession for MRT Sungai Buloh-Kajang Line stations and trains.
In a filing with Bursa Malaysia yesterday, Ancom said the JV company had received a letter of acceptance for its proposal submitted on June 16, 2016, from Mass Rapid Transit Corp Sdn Bhd (MRT Corp).
The proposal was for the design, build, operate and transfer advertising media equipment with the concession rights to sell and display advertising on trains and transit facilities of the MRT Sungai Buloh-Kajang Line under the Klang Valley MRT Project (KVMRT-SBK Line).
The request for proposal for the MRT advertising concession was for three packages namely Package A: Station Advertising, Package B: Exterior Station (piers to viaduct and ancillary buildings) and Package C: Train Advertising.
Yesterday, MRT Corp issued a letter of acceptance for Package A and Package C to the JV company, on an exclusive basis.
The MRT advertising concession is for 10 years after the date on which the first phase of the KVMRT-SBK Line becomes ready for commercial operation, the final date of which will be notified by MRT Corp.
The KVMRT-SBK Line has a track length of 51km with a total of 31 stations and 58 trains. The first phase is expected to commence commercial operation at the end of 2016 and the whole system by middle of 2017.
Ancom will announce further details of the concession once a formal definitive agreement has been signed.
Ancom’s Puncak Berlian Sdn Bhd had on June 8, 2016 entered into a JV agreement with Utusan Airtime Sdn Bhd, VGI Global Media Public Company Limited (VGI) and Ikatan Asli Sdn Bhd, to set up Titanium Compass.
Utusan Airtime is a wholly-owned subsidiary of Utusan Melayu (Malaysia) Bhd while VGI is an indirect subsidiary of BTS Group Holdings Public Company Limited.
Puncak Berlian holds a 51% stake, Utusan Airtime a 20% stake while VGI and Ikatan Asli hold 19% and 10% respectively.
VGI has an option to purchase additional 11% of shares in the JV company.