KUALA LUMPUR: Media Prima Bhd has entered into a deal with PNB Development Bhd to sell and leaseback New Straits Times Press (Malaysia) Bhd’s (NSTP) Balai Berita Bangsar and printing plant in Shah Alam for RM280mil.
“The sale and leaseback exercise takes into account the growth potential and opportunities for Media Prima operating as an asset-light group,” Media Prima group managing director Datuk Kamal Khalid said in a statement on Thursday.
The sale would net the group an estimated gain of RM127.7mil.
“This exercise will generate total savings of RM10mil per annum, and allow the group to preserve its cash reserves for its business transformation efforts,” Kamal said.
The sale and leaseback exercise for the properties is subject to compliance with the relevant authorities, and approval of shareholders of Media Prima and NSTP at extraordinary general meetings to be convened.
The proposed sale and tenancy agreements are expected to be completed by the fourth quarter of 2018.
Earlier this year, NSTP had disposed its 21.36% interest in Malaysian Newsprint Industries Sdn Bhd (MNI) for RM45.4mil cash to focus on digital content delivery and recoup part of its investment in MNI.In a separate announcement on Thursday, Media Prima announced that it had posted a net profit of RM31.9mil in the second quarter ended June 30.