Me­dia Prima sells Bangsar, Shah Alam properties

The Star Malaysia - StarBiz - - News -

PE­TAL­ING JAYA: Me­dia Prima Bhd has sold The New Straits Times Press (M) Bhd’s (NSTP) Balai Berita in Bangsar and the land where its print­ing plant is lo­cated in Shah Alam to PNB De­vel­op­ment Sdn Bhd for RM280mil.

This is the sec­ond ma­jor as­set that the group has dis­posed of af­ter sell­ing its 21.36% in­ter­est in Malaysian Newsprint In­dus­tries Sdn Bhd (MNI) for a cash con­sid­er­a­tion of RM45.4mil on May 2.

In an an­nounce­ment yes­ter­day, Me­dia Prima said the sale of the properties would trans­form the com­pany into an as­set-light group bet­ter po­si­tioned to ex­pand into the dig­i­tal and com­merce seg­ments.

Me­dia Prima group manag­ing di­rec­tor Datuk Ka­mal Khalid said that NSTP op­er­a­tions would con­tinue as usual be­cause Me­dia Prima would en­ter into ten­ancy agree­ments with PNB De­vel­op­ment for both the fa­cil­i­ties in Bangsar and Shah Alam.

He said the ex­er­cise, which would see the group re­alise an es­ti­mated gain of RM127.7mil, would gen­er­ate to­tal sav­ings of RM10mil per year. “It would al­low the group to pre­serve its cash reserves for its busi­ness trans­for­ma­tion ef­forts,” said Ka­mal.

In the sec­ond quar­ter ended June 2018, Me­dia Prima recorded a profit of RM32mil from a rev­enue of RM342.4mil. In the cor­re­spond­ing pe­riod last year, it reg­is­tered a loss of RM132.9mil on the back of a turnover of RM328.8mil. For the cu­mu­la­tive six-month pe­riod, Me­dia Prima turned in a profit of RM10.13mil on a turnover of RM623mil.

The sale of MNI, an in­vest­ment that was com­pletely writ­ten down last year, was done dur­ing the quar­ter.

Me­dia Prima’s main­stay free-toair tele­vi­sion rev­enues de­clined by 6% in the first six months of this year, while NSTP’s topline also was lower by 13% due to lower ad­ver­tis­ing and news­pa­per sales by 15% and 30%, re­spec­tively.

On the sale of Balai Berita and the Shah Alam properties, Me­dia Prima said it was done through a real es­tate firm and the group of po­ten­tial buy­ers in­cluded prop­erty de­vel­op­ers, real es­tate in­vest­ment trusts and ma­jor man­u­fac­tur­ing com­pa­nies.

At the end of the mar­ket­ing pe­riod, only two con­di­tional of­fers were sub­mit­ted; one for the Bangsar prop­erty and another for the properties in Shah Alam.

“Both con­di­tional of­fers were less at­trac­tive in com­par­i­son to the of­fer made by PNB De­vel­op­ment,” said Me­dia Prima.

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