Saturday June 1, 2013
Star Publications units to acquire 90% stake in Ocision for RM13.5mil
PETALING JAYA: Star Publications (M) Bhd's units, Star MediaWorks Sdn Bhd and Star Commercial Publications Sdn Bhd, will acquire a 90% equity stake in Ocision Sdn Bhd for a cash consideration of RM13.5mil.
Post-acquisition, Ocision will become a subsidiary of Star MediaWorks, which, in turn, is a sub-subsidiary of Star Publications.
Star Publications entered into a conditional share sale agreement yesterday with vendors Ng Say Joe, Tan Swee Yeong and Crystal Horse Investments Pte Ltd for the purpose of the acquisition.
“The Ocision Group owns three Internet portals, namely, iBilik.com, Propwall.com and Carsifu.com. The existing directors of Ocision are Ng, Tan and Michiel Adriaan Wind,” the company said.
Star MediaWorks will own a 90% stake, while the remainder equity stakes will be held by Ng post-acquisition, which is expected to be within 14 days after all conditions for the deal have been met.
The acquisition, which will be funded internally, is conditional upon the approval of the board of directors and, if necessary, the company's shareholders, among other factors. “The purchase price for the acquisition was negotiated and after taking into consideration the comparable price-to-earnings ratio and revenue multiples of digital asset acquisitions in the region,” Star Publications said.
It added that the acquisition would not have any material effect on the company's earnings per share for the financial year ending Dec 31, 2013.