Rev Asia to distribute RM59m from sale to shareholders

Media Prima annouced to Bursa Malaysia the proposed acquisition was expected to provide it with an opportunity to solidify its presence in the digital publishing business, which in turn is expected to facilitate the continued growth of the enlarged group moving forward.

KUALA LUMPUR: Rev Asia Bhd plans to distribute the bulk of the cash proceeds from the sale of its 70% stake in Rev Asia Holdings Sdn Bhd to its shareholders as cash dividend three months from the completion of the disposal of the stake to Media Prima Bhd.

Rev Asia said it was selling its 15.828 million shares in Rev Asia Holdings, which is involved in digital media, to Media Prima for RM73.5mil. Of the amount, RM59mil will be distributed to shareholders. 

Youth Asia Sdn Bhd is selling the other 30% stake in Rev Asia Holdings for RM31.50mil to Media Prima. 

“The proposed disposal represents the disposal of the advertising and internet social media business undertaken by Rev Asia Holdings Group to Media Prima,” said Rev Asia.

The announcement confirmed a StarBiz report on Monday that Media Prima Bhd, which fell into the red in the financial year ended Dec 31, 2016 (FY16), is looking to buy digital media portals belonging to Rev Asia Bhd, itself a unit of Internet company Catcha Group.

The report, according to sources, had stated the media group could be paying up to RM100mil worth of such portals from Rev Asia. Media Prima is keen to strengthen its online business.

Click here to read the earlier report http://bit.ly/2pqHhPu