MingPao usurps SinChew & Nanyang
We are staring at a near monopoly. The mega merger of Chinese Press in Malaysia is now set in motion and the exercise now looks irreversible.
In an exercise termed as a "business combination" involving SinChew Media Corp (SinChew), Nanyang Press Holdings Berhad (Nanyang) and Ming Pao Enterprise Corporation Limited (MingPao), Sarawak timber tycoon Tiong Hiew King will usurp the assets of SinChew Daily and Nanyang Press to morph them into a global media conglomerate.
Tiong's chosen vehicle is the MingPao media group, which was incorporated in Bermuda, listed in Hong Kong, with its newspapers and magazines distributed throughout North America and Greater China.
Under the proposal, the listing status of SinChew will be transfered to MingPao, and thereafter SinChew and Nanyang will be delisted from the Main Board of Bursa Securities.
Upon completion of the proposals, SinChew and Nanyang will become wholly-owned subsidiaries of MingPao, and MingPao will be primarily listed on both Bursa Securities and the Stock Exchange of Hong Kong Limited ("HKEx").
The deal was pieced together by CIMB Investment Bank Berhad.
Share exchange
The exercise will involve the proposed share exchange of SinChew and Nanyang for new MingPao shares.
A summary by Bloomberg says SinChew shareholders will get 3.3 new MingPao shares for every SinChew share, and Nanyang shareholders will get 3.47 MingPao shares.
The deal values Sin Chew stock at RM4.00 a share, Nanyang at RM4.20 a share, and MingPao at HK$2.70.
Nevertheless, SinChew also said in a statement to Bursa Malaysia late today that the indicative swap ratios of the proposed share exchange of SinChew and Nanyang will still be subject to change.
The deal is said to be hinged on approval from the Security Commission and the relevant ministries and agencies. The deal is also said to be pending Nanyang's accepting the invitation to participate in the exercise and acceding to the arrangement.
Nanyang, which was bought over by MCA before it slipped into Tiong's hands, owns Malaysia's second largest circulation daily, China Press, and New Life Post stable of magazines.
However, industry sources said Tiong has already obtained all the green-lights to proceed.
In other words, done deal.
More.
Comments
the newspapers that have been existing in malaysia for many decades are chucked away just like that?
it is like destroying Kota A Famosa with a snap of fingers...
anyways, I predict that the share value will fall sharply
as the chinese community will most likely boycot such newspaper and Oriental Daily might emerge as the people's paper.
(contrary to Frank&Honest's statement)
expect something xtremely hot in Chinese community in next few days.
Posted by: Life Feel![[TypeKey Profile Page]](http://www.jeffooi.my/nav-commenters.gif)
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January 29, 2007 08:39 PM
Life Feel:
Sorry, I have to be strongly disagree with you. Don't expect anything significant to be happening. Chinese 'community' in Malaysia?? They only care about how much they earning this week and how to squeeze/save more $ from the living cost everyday(they are very proud of this 'environment adaptability' when MCA politicians made such 'compliments').
Posted by: Steve![[TypeKey Profile Page]](http://www.jeffooi.my/nav-commenters.gif)
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January 29, 2007 09:39 PM
steve,
if this is what majority non chinese speaking society thinks about the chinese community in malaysia,
then I would like to say that chinese community is highly misunderstood.
I suggest you to read more about history, as I believe more readers will give points to support my view above.
This debate has happened before, that is why i mentioned the name of one of screenshot's reader, who refuse to reply when the concrete proof has been mentioned.
whatever you think about the chinese community, lets just see what happen next. History will repeat itself.
Posted by: Life Feel![[TypeKey Profile Page]](http://www.jeffooi.my/nav-commenters.gif)
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January 29, 2007 09:55 PM
Steve, what's wrong with being highly "adaptable"? Survival mah. Else what? Ask help from Government and continue being labelled "lazy" and "crippled"?
Posted by: azk![[TypeKey Profile Page]](http://www.jeffooi.my/nav-commenters.gif)
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January 29, 2007 11:16 PM
highly adaptable does not mean the chinese takes in every shit. monopoly or not, if the paper is not doing what a paper is suppose to do, don't blame the blogger and don't cry like a baby when its sales has drop. we may not be able to reverse this deal, but we as a user can choose not to buy the paper if it does not do its job.
Posted by: streetz![[TypeKey Profile Page]](http://www.jeffooi.my/nav-commenters.gif)
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January 30, 2007 01:17 AM
do u know that oriental daily has 3 blogs?
I think OD will be the bloggers friend...
i plan to subscribe to Oriental Daily
Posted by: Life Feel![[TypeKey Profile Page]](http://www.jeffooi.my/nav-commenters.gif)
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January 30, 2007 01:26 AM
I bet not many English reader know about Ming Pao, take your time and have a brief idea about Ming Pao founding. It is founded by famous Chinese novelist Zha Liangyong and Shen Pao Shing.
Under Zha Liangyong supervision, Mingpao is a respectable newspaper which practice journalism and news independency. However, Zha Liangyong sold Ming Pao to Yu Pan Hoi in 1992. It changed ownership again in 1995 to the Sarawak Tycoon. Post Zha Liangyong era, people are skeptic MingPao ability to keep the journalism practice which runs for many year.
Tiong action are low profile. But one shouldn't underestimate the Chinese reader mentality. A change of view will come with dire consequence, because Chinese reader are not as forgiven than you though, especially HK Ming Pao reader.
Posted by: moo_t![[TypeKey Profile Page]](http://www.jeffooi.my/nav-commenters.gif)
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January 30, 2007 10:42 AM
CIMB? Again?
Posted by: IImran![[TypeKey Profile Page]](http://www.jeffooi.my/nav-commenters.gif)
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January 30, 2007 12:20 PM
I see this deal the other way round. I think the owners are trying to monetise their investments in Sin Chew and Nanyang by exchanging them with Ming Pao shares. Thus they can sell the shares in HK and keep the money there. Same as the PPB/Wilmar deal. I expect to see more similar deals soon. Thats how I think the rich tycoons are reacting to the recent breakdown in racial relationship, no thanks to the PM and his SIL and his racial remarks.
Posted by: maggieq![[TypeKey Profile Page]](http://www.jeffooi.my/nav-commenters.gif)
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January 30, 2007 10:49 PM