Prominent business figure Lim Guan Teik today reiterated that his group is no longer interested in the takeover of Nanyang Press Holdings and has had no contact with the publishing company's new owner Huaren Holdings since its failed bid.

Lim was responding to a report on the online Daily Edge yesterday that Huaren is in talks with two potential investors to reduce its stake in Nanyang Press to meet the public spread requirement under the Kuala Lumpur Stock Exchange rules.

"We gave up our plan totally," he said when contacted.

Huaren director Oh Chong Peng was quoted as saying that there were two other parties which had expressed interest in Nanyang Press, adding that all four parties were locally-based "individuals and consortiums".

Lim said he did not know who the likely buyers are as he had not been keeping tabs on the development of Nanyang Press since the five-member consortium he led failed to obtain a total stake in the newspaper company which publishes Nanyang Siang Pau and China Press .

"In fact, these days, I seldom see reports about Nanyang Press in Chinese newspapers," said Lim, who is the president of Associated Chinese Chambers of Commerce and Industry of Malaysia or ACCCIM.

Nation-wide boycott

In May, amid strong public objections, MCA acquired 72.35 percent of Nanyang Press' shares in a controversial RM230 million deal through its investment arm Huaren Holdings.

A nation-wide boycott campaign against the dailies was subsequently launched and was said to have affected sales by at least five percent.

In June, the Lim-led consortium had offered to purchase Nanyang Press from MCA at RM5.60 per share for the political party's entire stake in the media company.

However, in early August, MCA only came back with an offer of a 20 percent stake, leaving the group little choice but to forget the whole thing.

Later in the same month, Huaren made a mandatory general offer and increased its stake in Nanyang Press to 92.14 percent.

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

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

Nanyang Press recorded a net loss of RM5.21 million in the fourth quarter ended June, from a nett profit of RM5.23 million in the previous corresponding period.

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

Revenue marginally affected

Yesterday, Nanyang Press managing director Liew Peng Chuen conceded to the press that the circulation and advertising revenue of Nanyang and China Press has been "marginally affected" since June, but added that the situation had improved.

However, he refused to divulge statistically how bad the situation was after the takeover.

As part of cost-costing measures, Liew said Nanyang Press may close down several of its seven printing plants, but stressed that there will be no lay-offs.

Liew was editor-in-chief of The Star , also owned by Huaren, prior to becoming the chief executive of Sin Chew Jit Poh , a rival newspaper of Nanyang .

Together with a group of Sin Chew editorial and administrative staff, Liew left Sin Chew for Nanyang Press and took up his present posting within 24 hours after Huaren took over.

This sparked off speculation that Sin Chew boss, Sarawakian timber tycoon Tiong Hiew King, was eyeing Nanyang Press to consolidate the local Chinese media, which Tiong, however, has denied.