Business

Friday June 19, 2009

Star and SPH in another venture


KUALA LUMPUR: Star Publications (M) Bhd yesterday signed an agreement with Singapore Press Holdings Ltd (SPH) through its wholly-owned subsidiary, SPH Interactive International Pte Ltd (SPHII), for a 20% stake in 701Sou (Hong Kong) Pte Ltd.

The signing ceremony took place at the SPH News Centre in Singapore where executive deputy chairman Datuk Clement Hii signed on behalf of Star and SPHII was represented by Alan Chan, chief executive officer of SPH.

The event was witnessed by Star’s group managing director/chief executive officer Datin Linda Ngiam and SPH’s senior executive vice-president, marketing, Leslie Fong.

Under this agreement, Star will hold a 20% stake in 701Sou for a consideration of S$5mil (about RM12.05mil), while SPH remains the major shareholder with 55% through SPHII, 701Search Pte Ltd owns 10% and Fung Choi Printing Ltd 15%.

From left to right: Leslie Fong, Senior Executive Vice-President, Marketing Division, SPH; Alan Chan, CEO, SPH; Dato' Clement Hii, Executive Deputy Chairman, Star Publications (M) Bhd and Datin Linda Ngiam, Group MD/CEO, Star Publications (M) Bhd .

Star said in a statement that 701Sou provides online directory search services in China through its website 701Sou.com.

Launched in November 2008, the site has attracted a monthly visitor rate of six million and a return visitor rate in excess of 28%. 701Sou has since surpassed the top two providers in China based on third-party ranking by Alexa in terms of site visits and reach.

This is the second venture between Star and SPHII – the first was last year with the creation of 701Panduan Sdn Bhd. Launched in March this year, 701Panduan.com has grown to be a popular site with local users.

With an average monthly visitor rate of one million and a return visitor rate in excess of 30%, the site has surpassed the top three providers in Malaysia based on third-party ranking by Alexa in terms of site visit and reach.

“Star Publications is very pleased that SPHII has invited us onboard as partners in 701Sou – a venture that they have already successfully launched in China,” Hii said. “This is indeed something very rare in a business relationship. It shows our partnership has progressed to a higher level as a result of our working together in 701Panduan, our joint-venture business in Malaysia.”

SPHII’s Chan said: “Following 701Panduan, we are confident that the synergistic partnership between SPH and Star will continue to contribute to the success of 701Sou.

“We look forward to more future collaborations between the two media powerhouses.”


STAR : [Stock Watch] [News]


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