Media Prima Bhd’s subsidiary The New Straits Times Press (Malaysia) Bhd (NSTP) together with other shareholders of Malaysian Newsprint Industries Sdn Bhd (MNI), have agreed to sell their entire interest in MNI to Asia Honour (Hong Kong) Ltd.
In an exchange filing Friday, the media group noted NSTP has agreed to dispose of its entire interest in MNI for RM14.15 million cash as well as entire interest in redeemable preference shares of MNI for an amount equivalent to NSTP’s portion of the balance consideration after deducting inter alia all secured debts, admitted debts, liquidation costs and other agreed costs from the sum of RM338.0 million.
The proposed disposal will be completed on the eighth business day from the date of the agreement of May 2. The move will enable Media Prima to recoup part of its investment in MNI which had been fully written down in financial year 2017.
The full sale consideration is expected to be received by NSTP within the third quarter of the financial year ending Dec 31, 2018.