MGO for Media Prima seen far-fetched

CGS-CIMB Exploration says it is far-fetched a compulsory general offer (MGO) will happen for Media Prima Bhd following news reports that investor Tan Sri Syed Mokhtar Al-Bukhary is increasing his stake in the media gathering.

As per stock trade filings with Bursa Malaysia yesterday, Aurora Mulia Sdn Bhd, a vehicle identified with very rich person Syed Mokhtar, has purchased a 11.09% stake in Media Prima from Gabungan Kesturi Sdn Bhd.

Gabungan Kesturi is an organization possessed by Amanah Raya Bhd, which was holding the stake in Media Prima in the interest of Umno.

With the procurement, Syed Mokhtar is currently the third biggest investor in Media Prima.

He additionally possessed a value enthusiasm for other media organizations including Utusan Melayu (Malaysia) Bhd and The Malaysian Hold.

The stake buy in Media Prima had started theory that Syed Mokhtar is pondering a super merger of media organizations in Malaysia.

"We don't think Syed Mokhtar's buy of the 11.1% stake in Media Prima would trigger a MGO.

"Regardless of whether he wipes up the staying 7.96% stake in Media Prima that UMNO possesses through Altima Inc, that would not be sufficient to trigger the 33%-half crawling limit for a general offer," CGS-CIMB said in a report yesterday.

The exploration house called attention to that it would be negative for Media Prima's prospects if Syed Mokhtar merged his unrewarding media resources with Media Prima.

"Without a MGO point, we see no relief for Media Prima's offer cost in the short-to medium term. Its high fixation in conventional media leaves it defenseless against a proceeding with decrease in income.

"In addition, its news division is failing to meet expectations in respect to its companions, which makes it the greatest hazard to the gathering's general gainfulness, and a potential de-rating impetus for its stock," CGS-CIMB said.

As indicated by Bloomberg information, a square of 123.02 million offers in Media Prima was executed on July 2 at the cost of 60 sen an offer.

This spoke to a premium of 23.7% to the stock's end cost of 48.5 sen. It shut unaltered yesterday.

From the closeout of the 11.09% stake in Media Prima, Umno, still holds a 7.96% stake in the organization through Altima Inc.

"In the event that anything, Media Prima's shareholding has turned out to be more fragmented,"CGS-CIMB said.

In Spring this year, Umno delegate president Datuk Seri Mohamad Hasan told an online entrance that the gathering would arrange its stake in Media Prima because of its financial requirements.

Prior in February, Umno sold its 31.6% value enthusiasm for Bahasa Malaysia day by day distributer Utusan Melayu for an aggregate of RM6.65mil.

As indicated by sources, The Edge Media Gathering's Datuk Tong Kooi Ong had additionally been drawn nearer to procure a stake in Media Prima.

Be that as it may, the dealings did not emerge.

Syed Mokhtar's choice to broaden his introduction in the media fragment brings up issues, thinking about the segment's difficult business condition.

No comments:

Post a Comment