Wednesday, August 3, 2011

#Flash* Justin Leong explains why he bought Catcha Media shares

KUALA LUMPUR: GENTING BHD []'s Datuk Justin Leong Ming Loong whose purchase of 5.01% stake in Catcha Media Bhd spurred a rally in the share price on Wednesday, Aug 3, said he saw a lot of upside for the New Media.

Catcha shares rose 21.5 sen to 78 sen at midday, with 11.539 million shares done, bucking the weaker broader market.

The FBM KLCI lost 11.26 points to 1,543.59 at the mid-day break but off the early low of 1,538.95. Losers beat gainers by 528 to 114, while 248 counters traded unchanged. Volume was 536.70 million shares valued at RM743.25 million.

Leong, is the head of strategic investments and corporate affairs of Genting Group. He is a grandson of the late Tan Sri Lim Goh Tong, the founder of the Genting Group.

Catcha Media had at midday break, announced Leong's acquisition of the stake in the company.

Leong said: 'Catcha Media aims to be the largest new media player in the country and I've seen the way new media has changed industries. Malaysia and Asia will undoubtedly see tremendous growth in this sector in the near future. Catcha Media is an opportunity for me to buy into a first-mover, category-leader, run by people I know and trust.'

'The rapid growth of an urban middle class in China and South East Asia will result in huge growth in discretionary spending. This demographic and behavioural shift translates positively to consumer categories which, in turn, translates to a disproportionate growth in media, in particular, online media. Catcha Media is one of the very few companies leading the way in online media, and possibly the only player with its particular mix of print and online media assets.'

When asked if his investment in Catcha Media would eventually become a part of the Genting Group's stable of businesses, Leong clarified: "Right now, this investment in Catcha Media is purely a personal one. The internet sector is of great personal interest to me

When asked if his investment in Catcha Media would eventually become a part of the Genting Group's stable of businesses, Leong clarified: "Right now, this investment in Catcha Media is purely a personal one. The internet sector is of great personal interest to me ' look at how the internet has changed the world, and how it continues to change industries."

Patrick Grove, Catcha Media founder and director said: 'I am delighted to have Justin as a substantial shareholder. His international experience, contacts and strategic nous gives him an ''excellent perspective on how the regional markets are likely to develop and it is therefore a vote of confidence in the efforts and achievements of the entire Catcha team.'

Leong's investment follows a series of strategic investments companies and individuals have made in Catcha Media, including STAR PUBLICATIONS (M) BHD []'s acquisition of a 4.99% stake.

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