MPB proposes NSTP acquisition

MPB   NSTP   ACQUISITION   MEDIA

• MPB proposes NSTP acquisition
• Consolidation could generate over RM1 billion in annual revenue
• MPB and NSTP editorial, management and board remain independent

Malaysia - Media Prima Berhad (MPB) has officially announced its proposal to acquire Malaysia's largest newspaper publisher, The New Straits Times Press Berhad (NSTP).

The consolidation of the two media companies is projected to generate over RM1 billion in annual revenue with net profits exceeding RM140 million.

Under the proposal the editorial, management and board of MPB and NSTP will remain mutually independent and exclusive like other subsidiaries of MPB. The brands of its individual print, television and other media platforms will be retained. 

"MPB's current equity stake in NSTP does not permit us to translate our vision to unlock both MPB and NSTP's full potential and steer it quickly enough in the strategic manner required to take advantage of the opportunities which we come across. So the proposed acquisition is a decisive move to chart our growth strategy," MPB chairman, Datuk Johan Jaaffar, said.

A Conditional Take-Over Offer will be made to the shareholders of NSTP by way of a 1:1 share exchange for MPB shares at an issue price of RM2.00 together with 1 free new warrant in MPB for every 5 offer shares accepted.

The Offer is undertaken principally to increase MPB's equity interest in NSTP with the intention of making NSTP a subsidiary.

The share exchange ratio of 1:1 is derived from market price driven benchmarks such as historical average price of MPB and NSTP in the past one year, Volume Weighted Average Price, average analysts consensus target prices and average trading comparables based on price / earnings multiple for selected media companies in the region.

MPB Group MD, Dato' Amrin Awaluddin expressed his confidence NSTP shareholders would decide in favour of the proposal as it presented an "excellent opportunity to see their investments unlocked and perform to their true potential when more advertising based revenue comes in."

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