Thursday, May 19, 2011

Star Publications buys 80% stake in Capital FM for RM15m

KUALA LUMPUR: Star Publications (Malaysia) Bhd is buying an 80% stake in radio station operator Capital FM Sdn Bhd for cash consideration of RM15 million to expand its portfolio.

Star said on Thursday, May 19 that it was acquiring the stake of 4.0 million shares or 80% from Multimedia Distribution & Marketing Sdn Bhd.

Capital FM shareholders are Multimedia Distribution & Marketing and ISY Holdings Sdn Bhd, which hold 4.50 million shares and 500,000 shares respectively.

ISY has an individual licence to provide terrestrial radio broadcasting which is valid from Feb 10, 2006 to Feb 9, 2016. Following an agreement between ISY and Capital FM is licensed to operate a radio station.

'The proposed acquisition is in line with Star's business strategy of acquiring more media assets to add to its existing portfolio. Radio is recognised as one of the communication media with potential growth opportunities, as shown by the increase in its share of advertising expenditure in recent years. The proposed acquisition will allow Star to participate further in the market for radio advertising to supplement its present strong foothold in the market for print advertising,' it said.

The radio channels currently under Star Rfm Sdn Bhd are 98.8 and Red FM 104.9 and Suria FM under Rimakmur Sdn Bhd.

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