Media Prima Bhd's shares up
Published on: Tuesday, September 04, 2018

Kuala Lumpur: Media Prima Bhd's shares were up on Monday morning after the company announced the disposal of four properties in Bangsar and Shah Alam to PNB Development Sdn Bhd for RM280 million, resulting in a one-off net gain of about RM127.7 million.At 9.52 am, the shares rose 3.5 sen to 44.5 sen with 539,000 shares traded.

The company said previously that its 98.2 per cent-owned subsidiary, New Straits Times Press (M) Bhd (NSTP), had entered into three separate conditional sales and purchase agreements with PNB Development for the proposed sale of the properties.

The four properties are two pieces of freehold land in Bangsar where NSTP's Balai Berita headquarters is located, a piece of freehold industrial land with buildings in Shah Alam where its printing plant is located, and another freehold industrial land, also in the Selangor state capital.

Public Bank Investment Bank Bhd has maintained its neutral call on the company and tweaked the earnings forecast to a higher net loss forecast for Financial Year (FY) 2018 and lower net profit forecast for FY19-FY20, to account for the soft advertising expenditure which offset the estimated cost savings from the sale and leaseback exercise.

"Noted that the impact of the sale and leaseback exercise should be reflected in FY19F as it is expected to be completed by 4QFY18. Given the reduction in accumulation losses from the one-off disposal gain which increased its book value, the target price was raised to 49 sen from 42 sen previously," it said. –Bernama


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