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Sin Chew Media Corp Bhd, a wholly-owned subsidiary of Media Chinese International Ltd (MCIL), is acquiring a parcel of industrial land on Jalan Semangat at Seksyen 13, Petaling Jaya, Selangor for RM18.4 million.

MCIL said the property, comprising a factory and a warehouse with a gross floor area of 40,010 sq ft, is located adjacent to the land currently owned by MCIL where certain of the group’s operation (Sin Chew Media) is.

“It is intended for self-use and consolidating of various offices of the group in Malaysia into a single location. The board of directors considers that the proposed acquisition is expected to improve operation efficiency by consolidating the group’s various offices into a single location and will provide a more optimal area for the group’s future expansion or development,” said MCIL in a filing with Bursa Malaysia today.

MCIL said Sin Chew Media has today entered into a sale and purchase agreement with Optical Communication Engineering Sdn Bhd (OCE) to acquire the property.

OCE, a broadband Internet services provider, had originally purchased the property from Rimbunan Hijau Estate Sdn Bhd on Sept 26, 2011 for RM14 million.

The proposed acquisition is a related party transaction as OCE is 25.66% owned by MCIL substantial shareholder Tan Sri Tiong Hiew King, 15.09% by Pertumbuhan Abadi Asia Sdn Bhd, 9.43% by Datuk Wong Hee Joo, 7.55% by Teck Sing Lik Enterprise Sdn Bhd, 7.55% by Tiong Toh Siong Holdings Sdn Bhd, 3.78% by Tiong Toh Siong Enterprises Sdn Bhd and 0.47% by Datuk Seri Dr Tiong Ik King.

Thus, Hiew King, together with his family interests, controls 30% or more of OCE.

MCIL said it will fund the land acquisition via internal resources.

The proposed acquisition is expected to be completed by June 30, 2019.

Shares in MCIL closed unchanged at 20.5 sen in the morning session, with 1.32 million shares done, bringing a market capitalisation of RM345.88 milllion.

News Source: The Edge Malaysia, 30 November 2018

 

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