KUALA LUMPUR: Media Prima Bhd subsidiary The New Straits Times Press (M) Bhd (NSTP) and Hong Leong Industries Bhd (HLI) are disposing of their entire stakes and all their redeemable preference shares in Malaysia Newsprint Industries Sdn Bhd to Asia Honour (Hong Kong) Ltd.
NSTP is selling its 21.36 per cent stake for RM14.15 million while HLI is selling its 33.65 per cent for RM22.3 million.
Both companies are disposing of all their redeemable preference shares in MNI for an amount equivalent to their respective portion of the balance consideration after deducting all secured and admitted debts, liquidation costs and other agreed costs.
In their filings to Bursa Malaysia, Media Prima and HLI said MNI shareholders have inked a share sale agreement (SSA) to sell their shares in MNI with the consent of liquidator, Lim San Peen of Pricewaterhouse Coopers Advisory Services Sdn Bhd.
Other shareholders of MNI are Norske Skog and the Rimbunan Hijau group.
Media Prima said the proposed disposals will be completed on the eighth business day from the date of the SSA.
The full sale consideration is expected to be received by NSTP within the third quarter of the financial year ending December 2018.
Media Prima said NSTP’s proposed disposal will enable the company to recoup part of its investment in MNI which had been fully written down in financial year 2017.
