Showing posts with label nstp. Show all posts
Showing posts with label nstp. Show all posts

Friday 13 November 2009

Media Prima revises upwards offer for NSTP

Media Prima revises upwards offer for NSTP
Published: 2009/11/13

Media Prima says it proposes to increase the offer price of each NSTP share to RM2.40 from RM2 previously offered.


Media Prima Bhd (MPB) (4502) yesterday revised upwards its takeover offer for The New Straits Times Press (M) Bhd (NSTP).

MPB, which holds a 43 per cent interest in NSTP's equity, wants to buy all shares not owned by it in the newspaper company and later take it private. The takeover will be done through a share exchange.

Through CIMB Investment Bank Bhd yesterday, MPB announced its proposal to increase the offer price of each NSTP share to RM2.40 from RM2 previously offered.


Consequently, it proposed to revise the exchange ratio to six new MPB shares for every five offer shares accepted and one new MPB warrant free for every five offer shares accepted.
(6 new MPB share + 1 new MPB free warrant = 5 NSTP shares)

In its earlier offer, MPB offered an exchange ratio of one new MPB share for every one offer share and one new MPB warrant for every five offer shares.
(5 new MPB share + 1 new MPB warrant = 5 NSTP share)

MPB said its board thinks the higher exchange ratio is justified to improve attractiveness of the offer while not detrimental to interest of its existing shareholders. It said the revision was done after considering views of various stakeholders of NSTP and the prevailing market sentiment.

"The revised offer is attractive and fair as the revised exchange ratio represents a 10 per cent premium over the average market price of NSTP shares for the last month and a 33 per cent premium over the average market price in the same period based on absolute price.

"This revised offer reinforces MPB's belief of the greater benefits to be gained and synergies that can be crystallised by the enlarged group post completion of the transaction," MPB's group managing director Datuk Amrin Awaluddin said.

Separately, NSTP yesterday declared a special tax-exempt special dividend of 40 sen for every share held as at November 26 2009.

"We view positively NSTP's declaration of the special dividend as it is consistent with MPB's practice of returning excess capital to its shareholders.

"Our intention of returning the entire proceeds from the special dividend received from NSTP reiterates our commitment to continually enhance our shareholders' returns on their investment in the group," Amrin added.

The announcement will see NSTP paying out some RM86.9 million in dividends to shareholders. Its board said that the company has a substantial amount of retained earnings which can be rewarded to shareholders.

MPB said as an existing shareholder, it will be entitled to its portion of the special dividend amounting to around RM37.6 million.

It added that it intends to distribute to its own shareholders the entire amount of NSTP special dividend it will receive but said NSTP shareholders who accept its revised offer will not be entitled to the MPB special dividend.

NSTP shareholders who have accepted the original offer on November 5 2009 will however be entitled to receive the revised offer and also the NSTP special dividend.

http://www.btimes.com.my/Current_News/BTIMES/articles/mpb12-2/Article/index_html