Star Media Group has sold its 52.51% stake in Cityneon Holdings for SG$115.61 million or RM360.18 million cash to investment holding company, Lucrum 1 Investment. The transaction is valued at almost 33 times the earnings of the Singapore listed events and exhibition company.
This deal is expected to allow Star Media Group to realise a gain on disposal of about SG$68.71 million or RM214.07 million.
Cityneon positions itself as a full service ideas agency. It has five business segments, namely events, exhibitions, experiential environment, interior architecture, and intellectual property rights.
The buyer Lucrum 1 Investment and Star Media Group agreed on the price, after taking into consideration the latest audited net asset of Cityneon for the FY ended 31 December 2016 of SG$69.29 million, according to an announcement on Bursa Malaysia on Friday.
“Based on the earnings of Cityneon for the financial year ended December 2016, the disposal represents an implied price-to-earnings ratio (PER) of approximately 32.97 times,” it said, adding that the proposed disposal enables Star Media to focus on the expansion of its primary business activities.
The latest deal comes after two other major media acquisition deals announced just last week – the Media Prima’s buyout of RevAsia on 8 May 2017 and Singapore Press Holdings selling off its stake in 701Search, who owns Mudah.my, to Norwegian telco Telenor (which owns DiGi), in a deal worth US$109 million on 12 May 2017.