FSBM Holdings Bhd plans to inject two units, FSBM Net Media Sdn Bhd and FSBM M2B Sdn Bhd, into a holding company known as FSBM Broadband Systems Bhd and, subsequently, list the latter on the Mesdaq market.
FSBM Holdings said in a statement that it had submitted an application to the exchange and the Securities Commission to that effect.
FSBM Broadband, formerly known as Eco Media City Consortium Bhd, is dormant now.
According to FSBM Holdings, wholly-owned unit FSBM Net Media provides communication and networking services, while 53.66%-owned FSBM M2B is involved in content syndication and distribution, content aggregation, channel development, electronic programming, consultancy and design.
FSBM M2B is valued at RM40.3mil and FSBM Net Media RM2.52mil.
As payment, FSBM Broadband will issue 8.96 million new shares for the acquisition of FSBM M2B and 559,222 new shares for FSBM Net Media, both priced at RM4.50 apiece.
As part of the exercise, FSBM Broadband also plans a 1-for-6 rights issue of 1.7 million new shares, as well as a split of its shares to a par value of 10 sen from RM1. As a result, FSBM Broadband's paid-up capital will be 121.51 million shares of 10 sen each.
FSBM Broadband will, subsequently, implement a public issue and placement of 23 million new shares.
In a separate statement, FSBM Holdings said FSBM M2B had entered into an agreement with NEC Corp of Japan to jointly market and promote entertainment programmes to the latter's broadband subscribers.
Under the agreement, FSBM M2B would develop a broadband entertainment website to complement and enhance NEC's broadband services, providing English and Japanese entertainment programmes via a monthly subscription and pay-per-view platform, it added. – AFX