Tycoon Tiong Hiew King's acquisition of the ailing Nanyang group of newspapers will not see them merging with his other established media flagship, Sin Chew Media Corporation.

Nanyang and Sinchew will be "different products under the same boss", Sin Chew's managing director Liew Chen Chuan ( right ) told company staff at a briefing yesterday.

Liew said both companies will maintain their current 'competitive relationship' and Sin Chew will not take control of Nanyang.

He defended Tiong's decision to buy into Nanyang, arguing that the acquisition is a 'commercial competition' and not a 'media monopoly'.

However, he said that Tiong would allow the papers to compete against each other in a healthy manner but was against them criticising each other.

Meanwhile, in a company briefing yesterday Nanyang Press Holdings managing director Gan Chin Kew told his staff that nobody is willing to bail out Nanyang except Tiong who offered a high price of RM4.20 per share.

However, he believed that Tiong is not likely to inject more funds into Nanyang and that Nanyang is not likely to merge with Sin Chew.

Key factor

Nanyang's financial situation has not been healthy in recent years. It suffered RM6.3 million losses in its last financial year ending on June 30, 2006. It was also the first time Nanyang suffered losses after being taken over by MCA.

The increasing losses of Nanyang is said to be the key factor that contributed to the sale of the shares by MCA. The party desperately wanted a way out as the daily was seen as losing credibility under the control of the political party.

Gan also denied that there will be monopoly in the Chinese media in Malaysia, saying that any form of monopoly is impossible in the information era.

In a statement yesterday, he stressed that after acquisition, Nanyang will continue to be a independent media institution.

He believed that Tiong's rich experience in the media business will bring Nanyang to a new era in the nation's Chinese media industry.

The acquisition of the Nanyang Group five years ago had also caused a split within the party. The Chinese community had also slammed the party for the controversial purchase which was subsequently pushed through by the party under its former president, Dr Ling Liong Sik.

Apart from that, the purchase also resulted in the party suffering financial losses.

Tiong's stake at 44.76 percent

On Tuesday, speaking to party leaders in a close-door session, MCA treasurer Lau Yin Pin, who is also the chairperson of the party's investment arm Huaren Holdings, is reported to have said that over the last five years, Huaren had paid an interest of RM58mil as the result of a RM383mil loan obtained in 2001 to acquire Nanyang.

Lau also revealed that Huaren currently still owes RM140mil.

Party president Ong Ka Ting who was also present at the briefing, explained other issues related to the party and the Chinese community.

In the central committee meeting prior to the briefing, he said that MCA has decided to sell off 21.02 percent of its controlling 44.4 percent stake in Nanyang Press Holdings to Ezywood, a company controlled by Tiong, a Sarawak timber tycoon.

Nanyang Press Holdings which was bought over by MCA investment arm Huaren Holdings in 2001, owns two main Chinese dailies - Nanyang Siang Pau and China Press.

The purchase increases Tiong's stake in Nanyang from 23.74 percent to 44.76 percent. He currently owns Sin Chew Media Corporation Bhd, which publishes two top newspapers, Sin Chew Daily and Guangming Daily .