Chuo Senko (Thailand), part of a Japanese-based agency network with offices in nine Asian countries, holds a 51% share holding interest, while Aegis Group holds the remaining 49%. An initial capital investment of $475,000 was put aside for future investment.
Howard Wang, CEO of Carat Asia Pacific, says the decision to invest in Thailand during the country's economic downturn is "based on a long-term strategy to establish a major Asian media network."
The joint venture "also allows partner Chuo Senko to differentiate its services from the competition and give its current clients in Thailand superior, value-added media services."
The ad agency's existing client base includes Japan's Ajinamoto, which produces frozen foods and beverages, 3M, Honda, and Thai International Airways.
Carat continues to seek expansion in the region, Mr. Wang says, and "if there are ways of cooperation in other markets, [further ventures with Chuo Senko] will happen if it makes commercial sense for both parties."
Copyright August 1998, Crain Communications Inc.