analysis

Since MCA's Huaren Holdings acquired Nanyang Press Holdings in May, there have been speculations over who will eventually take a large stake of the Chinese newspaper company from the political party's cash-strapped investment arm.

Recent developments renewed speculation that low-profile Sarawakian Chinese media mogul Tiong Hiew King may turn out to be the buyer.

Last Tuesday, Tiong-owned Sin Chew Jit Poh quoted the billionaire timber tycoon as saying that the domination of Western media today was the product of consolidation and conglomeration, and thus the people should not be unduly worried about media monopoly.

"I will never give up my ambition and plans simply because of criticism and pressure from the rest," he declared.

Tiong - a person known for his aspirations to develop an international Chinese media network - was making obvious reference to the public outcry against the controversial Nanyang deal, which was believed to have disrupted his initial plan.

When Huaren announced that it had concluded the RM230 million transaction with lightning speed, many in the Chinese community expressed concerns that Tiong was MCA's 'silent partner' in the takeover of Nanyang.

After all, the media tycoon controls Pemandangan Sinar, publisher of rival Chinese dailies Sin Chew Jit Poh and Guang Ming Daily .

According to the latest figures from the Audit Bureau of Circulation, Sin Chew is the country's top-selling Chinese newspaper with a daily circulation of 298,921, China Press is in second place with 202,066, followed by Nanyang , 187,458.

In addition, Tiong owns several other newspapers and publications in Hongkong, Papua New Guinea and Cambodia, including a regional magazine Yazhou Zhoukan (Asia Weekly).

'Fruitless' discussion

Earlier in June, Tiong told Yazhou Zhoukan he has had several discussions with Quek Leng Chan, former owner of Nanyang Press, on buying the company previously but the discussions were "fruitless".

He did not rule out the possibility of buying his way into Nanyang Press, saying that he was willing to work with MCA to achieve this aim

"If MCA wants to co-operate, I must have the biggest say in the management. We should have a mutual understanding and let the professionals run the editorial department without any political pressure," he said.

The consolidation of Nanyang Press and Pemandangan Sinar will deter the "vicious competition" between the newspapers, and create a "win-win situation" for the betterment of Chinese rights, he added.

In what appeared to be a coincidence, MCA president Dr Ling Liong Sik had said at the same time that he was looking for an "experienced partner".

Huge loan

Unlike Nanyang , Sin Chew has long been seen as a "friendly and trusted daily" to the present MCA leadership. Tiong was at one time involved in a Barisan Nasional component party in Sarawak but withdrew from politics later.

More suspicious still, within 24 hours after the Nanyang takeover its key editors and directors were sacked and replaced with a new editorial and administrative line-up taken from rival paper Sin Chew .

Sin Chew later insisted that the departure of its staff to Nanyang was entirely due to "personal decisions".

But many took the explanation with a pinch of salt, especially after Sin Chew 's chief executive PC Liew - editor-in-chief of English daily The Star during the 1980s - became Nanyang 's chief operating executive and was expected to be made managing director eventually. The Star , too, is owned by Huaren.

The pressing financial realities of Nanyang Press indicate that MCA is running out of time.

MCA took a huge loan to finance its takeover of Nanyang. The political party is already hard-pressed to meet the interest payments of the loan. Not surprisingly, it needs to off-load much of its Nanyang stake quick.

Late August, Huaren was given six months by the Securities Commission to dilute its stake in Nanyang Press to 75 percent in order to retain its listing status. The Nanyang counter has been suspended at RM5.40 per share since Aug 20.

The company holds a 92.14 percent stake in Nanyang Press following the closure of the unconditional mandatory general offer on Aug 17 for the shares it did not own then. Huaren paid RM5.50 per share for a 72.35 percent stake in Nanyang Press in May.

Five months to go

In other words, we are only about five months away, at most, from the announcement by MCA on who will the buyers be.

Ling recently said Huaren will reduce its stake to only 20 percent, and the new partner will be "the largest shareholder" in Nanyang Press.

Already Nanyang Press recorded a pre-tax loss of RM5.68 million for the year ended June 30, compared with a net profit of RM21.75 million previously which once made the company cash rich.

Out of the total loss, RM2.38 million was paid as compensation for eight senior editorial staffers who were asked to leave Nanyang Press.

Many predict that Nanyang Press will continue to be in the red for this fiscal year.

Among the local media companies, only Star Publications and Pemandangan Sinar seem to have reported profits as the others are still struggling to break even.

It was reported that the Utusan group recorded a net loss of RM23 million for the first six months this year while New Straits Times Press is in financial hot water with a loss of RM86 million as of September.

This leaves very few qualified candidates in Malaysia who are "experienced" and wealthy enough to make Huaren's plans complete.

Dollar billionaire

Tiong was listed by Forbes magazine as one of the US-dollar billionaires this year, beside three other Malaysians - Robert Kuok, Quek Leng Chan and T Ananda Krishnan.

The stumbling block that stands in Tiong's way - assuming he has been eyeing a stake in Nanyang Press - is therefore not money but public consent.

The same problem arises with MCA. The party has yet to recover from the split between leaders and members following the Nanyang takeover. Sparking off another round of controversy among the Chinese would not help in healing the wounds either.

Market analysts however noted that the final acquisition may not use Pemandangan Sinar as the vehicle. Proxies and distant subsidiaries prove useful under such circumstances and are more difficult to be linked to one particular individual.

Until then, a minimal level of thrill and suspense shall keep the drama going.

Though the ending may well be predictable.

TONG YEE SIONG is a member of the malaysiakini team.