| Contents | Pursuant to Paragraph 9.19 of the Listing Requirements of Bursa Malaysia Securities Berhad ( Bursa Securities ), the Board of Directors of the Company wishes to announce that Sin Chew Media Corporation Berhad (Company No. 98702-V) ( SCMC ) and Nanyang Press Holdings Berhad (Company No. 3245-K) ( NPHB ), the wholly-owned subsidiaries of the Company, have agreed to undertake an internal restructuring of MCIL Multimedia Sdn Bhd (formerly known as Nanyang Online Sdn. Bhd.) (Company No. 515740-D) ( MCIL Multimedia ) such that SCMC has on 1 August 2009 acquired 10,000,000 ordinary shares of RM1.00 each in MCIL Multimedia, representing 100% of the entire issued and paid-up capital of MCIL Multimedia, from NPHB at a total cash consideration of RM1.00 (or equivalent to approximately HK$2.20) (the "Acquisition").
After completion of the Acquisition, MCIL Multimedia becomes a wholly-owned subsidiary of SCMC, which in turn is a wholly-owned subsidiary of the Company.
MCIL Multimedia was incorporated on 1 June 2000 under the Companies Act, 1965 with an authorised, issued and paid-up share capital of RM10,000,000.00 comprising 10,000,000 ordinary shares of RM1.00 each. The principal activities of MCIL Multimedia are to carry out electronic commerce activities through internet and multimedia.
The Acquisition will enable the Company and its subsidiaries (the Group ) to streamline its online business in its Malaysian operations.
The Acquisition is satisfied wholly in cash and will have no significant impact on the Groups earnings and net tangible assets for the financial year ending 31 March 2010.
The Directors of the Company are of the opinion that the Acquisition is in the best interest of the Company and the shareholders as a whole.
This announcement is dated 3 August 2009. |