Malaysian tycoon Tiong Hiew King today signed deals to merge three publishing firms in Malaysia and Hong Kong, aimed at creating the largest Chinese-language media group outside of China.

The merger will combine Sin Chew Media Corporation and Nanyang Press Holdings, both listed in Malaysia, with Hong Kong-listed Ming Pao Enterprise Corporation via a share swap arrangement.

"The merged entity will become the largest Chinese media company outside of China," Sin Chew said at the signing.

Under the deal, Sin Chiew and Nanyang will de-listed from the Kuala Lumpur stock exchange and be replaced by Ming Pao, which will have dual listing in Malaysia and Hong Kong.

Ming Pao's listing in Malaysia is targeted for February next year.

The enlarged group will have a market capitalisation of "significantly more than one billion ringgit", officials said.

Its stable will include five major newspapers with a combined daily circulation more than one million copies, 37 magazines and three websites.

Media watchdogs have criticised the consolidation, saying concentration of ownership under Tiong would curb competition and threaten press freedom.

But Tiong, the majority shareholder in Sin Chew, Nanyang and Ming Pao, appeared undeterred, saying at the signing that "the way forward is to go from local to global and from print to multimedia."

Presence in China

Sin Chew director Rita Sim said the merger would allow the group to boost its presence in China and grow globally through mergers and acquisitions or new products.

"We are keen to expand to new markets, such as Europe ... areas where there are sizeable Chinese populations," Sim said, also flagging the group's intentions to expand from print to multimedia.

"As a group, we are very rich in content. The way going forward is to digitalise it. Broadcast would be one of them," she added.

Sin Chew publishes Malaysia's largest circulated Chinese newspaper, the Sin Chew Daily , while Nanyang produces the country's oldest Chinese-language daily, Nanyang Siang Pau .

Ming Pao Group publications include the Ming Pao Daily News , which is published in Hong Kong, Toronto, Vancouver, New York and San Francisco.