Sin Chew boss can join group to buy Nanyang

comments     Ng Boon Hooi     Published     Updated

The group of five Chinese business leaders which plans to buy MCA's newly-acquired Nanyang Press Holdings is not ruling out Sarawakian media tycoon Tiong Hiew King as a possible partner.

"We do not oppose Tiong's inclusion since he too is part of the Chinese community. But he may only have four or five percent of the shares so that he cannot be the major shareholder," said Ngan Ching Wen, a key member of the group.

Ngan, who heads the Selangor Chinese Assembly Hall as well as the Sino-Malaysia Chambers of Commerce and Economy, was speaking to journalists after the group's press conference this morning in Kuala Lumpur.

The group is planning to buy 72.35 percent of Nanyang Press shares from Huaren Holdings, the investment arm of MCA, at RM5.60 per share, totalling RM234 million.

Huaren acquired Nanyang Press, the publisher of dailies Nanyang Siang Pau and China Press , late last month at RM230 million despite strong objection from the Chinese community.

A boycott campaign was subsequently launched by various Chinese lobby groups and has affected the sales of the papers. The takeover has also worsened the split within MCA, with both camps, for or against the deal, going on roadshows to mobilise support nationwide.

Following this, MCA president Dr Ling Liong Sik offered to divest a strategic stake to interested parties within a 10-day period.

Opposition

It has been widely speculated in the Chinese community that Tiong, the owner of Pemandangan Sinar media group, which publishes Sin Chew Jit Poh and Guang Ming Daily , will take over Nanyang Press from MCA.

In a recent interview with Hong Kong-based Yazhou Zhoukan - a Chinese regional magazine, also owned by Tiong - the media mogul conceded that he was interested in taking over Nanyang.

However, he said if MCA wanted him to help run Nanyang Press, he must be given a major stake in the publishing company.

Various Chinese organisations and opposition leaders have opposed strongly to the possibility of Tiong taking over, fearing that the consolidation of the two largest Chinese newspapers groups will bring an end to the diversity of opinions.

No controlling stake

At the press conference today, Ngan said the principle of the group is that none of its members can hold a controlling stake in Nanyang Press, explaining that this is a measure to safeguard press independence.

"We will consider any individual, company or group who wants to be in the group, but none of them can dominate the company," he stressed.

Ngan, who is also the chairperson of listed Unico Desa Plantations, said that it is only by distributing the shares without having a major shareholder that an independent press can thrive.

He further stated that the proposal is not merely made in defence of Chinese interests, but also made after serious consideration of Nanyang Press' economic potential.

"The Nanyang group has managed to earn RM20 million in 1998 and RM26 million in 1999. Nanyang has a remarkable record," he said.

Ngan graduated in law from University of Singapore and economics from the now defunct Nanyang University. He currently manages his family business, Ngan and Ngan Holdings, an oil palm plantation company.



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