Business

Friday October 16, 2009

Media Prima to privatise NSTP


KUALA LUMPUR: After months of speculation, Media Prima Bhd is offering to privatise The New Straits Times Press (M) Bhd (NSTP) through a share swap with possibly warrants and ‘’another sweetener’’ to the deal, sources told StarBiz.

Both companies late last night announced the suspension of their shares today pending a material announcement.

Media Prima already owns 43.29% of NSTP but is seeking to fully incorporate NSTP’s earnings into its accounts and to allow both companies to derive more benefit from each other.

If the privatisation plan materialises, it will transform Media Prima into a media conglomerate with operations in free-to-air TV, radio, outdoor and newspapers.

News of a potential takeover, which first surfaced in July, has attracted much investor interest in NSTP. Its share price has shot up by close to 90% since and closed at RM2.46 per share yesterday.

As at end-June 2009, NSTP’s net tangible assets per share stood at RM4.51. As the largest shareholder of NSTP, Media Prima will not be allowed to vote on the deal. The second largest shareholder is the Employees Provident Fund with 10.53%, followed by Kumpulan Wang Persaraan with 2.7%.

The largest shareholder in Media Prima is Gabungan Kesturi Sdn Bhd, a company that is owned by Umno, the dominant party in the Barisan Nasional coalition.

It had been reported that several NSTP executives and board members have expressed some reservations to the newspaper company’s privatisation by its parent, raising concerns that the NSTP brand may be subsumed into the much larger group and its brand name diluted.

In a related development, Media Prima confirmed a StarBiz report that it was looking to sell its loss-making TV operations in the Philippines, Primedia. It said it was in “the final stages of negotiation” with a prospective strategic investor for its investment in Primedia.

 
MEDIA :  [Stock Watch]  [News]
NSTP : [Stock Watch] [News]


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