Authorised Investment Funds receives the offer to increase its investment in Hong-Kong based digital media investee company Asian Integrated Media Pty Ltd (AIM).
On 14 March 2019, Authorised Investment Fund Limited (ASX: AIY) announced that it has received an offer to acquire 30% interest in a new joint venture between Ambient Digital Group (ADG) and Asian Integrated Media Pty Ltd (AIM). To get hold of the highly lucrative offer in a superpowered digital market sector, AIY has agreed to ink a Non-Binding Indicative Term Sheet with AIM and ADG.
The duo is already making major inroads into the tourism industry under their “Travel Elite” joint venture. Launched in January 2019, Travel Elite Platform allows brands to advertise directly to destined travelers through the programmatic advertising channels.
ASX-listed Pooled Investment Fund, AIY is currently holding 25% interest in AIM as per the exclusive investment agreement that it entered into in April 2018. With the intention to acquire further 30% stakes in AIM’s joint venture, AIY seems to set its root strong in the multi-billion digital media sector.
The report read that this new joint venture between AIM and ADG is designed to provide data-driven programmatic online advertising campaigns, exclusively in the travel, luxury goods and private wealth sectors.
On the financial front, AIY is progressing to invest through the issue of its options and shares to acquire 30% stakes in AIM’s joint venture. This translates an investment of approximately $3.64 million including the issuance of AIY’s 5,200,000 shares and 5,200,000 options priced at $0.30 per share and $0.40 per option at exercise, respectively.
AIY’s intention to acquire 30% issued capital of the Venture company seems to be driven by the industry expert owners and the venture’s potential to generate robust revenue. The new venture has projected pretax revenue of US$2.7 million in 2019-20, US$5.3 million in 2020-21 and US$7.1 million in 2021-22. Also, the unique element of ADG’s proprietary programmatic technology focused on the extremely lucrative Chinese market of global travelers has driven the optimism about the successful launch and future growth of the venture.
The company eyes the investment in Ambient Digital and AIM new Joint venture as a remarkable and wonderfully exciting opportunity in the digital media sector.
It stated: “AIY is very pleased to have invested in AIM in 2018. To, now have the benefit and potential to be included in a much bigger and broader series of targeted marketing and programmatic campaigns and initiatives to capture a potentially significant portion of the immense shift toward multibillion-dollar digital and programmatic ad spend in other programmatic sectors is nothing short of a breath-taking opportunity.”
According to Zenith’s Programmatic Marketing Forecasts, “Programmatic ad spend could grow as much 19% this year, reaching US$84 billion with 65% of all money spent on advertising in digital media in 2019 expected to be traded programmatically.”
AIY last traded at $0.084 on the Australian Securities Exchange. Over the past five years, the stock’s value has increased more than three fold including as massive as 180.00% returns in just past three months as at 14 March 2019.
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