KUALA LUMPUR, Malaysia (July 2): Balai Berita Bangsar, one of two properties Media Prima Bhd sold to Permodalan Nasional Bhd (PNB) for RM280 million in 2018, is being bought back for RM156.4 million. Media Prima stated in a bourse filing that it has received a letter of offer from PNB’s wholly-owned subsidiary PNB Development Sdn Bhd to buy the building and the two plots of freehold land it now occupies, totaling roughly 151,814 sq ft.
It was also said that the deal will be totally paid for in cash.
According to Media Prima, the company is now renting Balai Berita Bangsar from PNB Development, and the building houses the company’s corporate headquarters as well as offices for its subsidiaries.
The planned acquisition, according to the company, will give long-term certainty, ensuring that activities at Balai Berita Bangsar are not affected.
The group has also considered Balai Berita Bangsar’s strategic location as an ideal place to support the group’s activities and future expansion, according to the statement.
In addition, the company plans to invest in new studios to supplement its existing studios and to concentrate its news gathering operations in order to meet its rising content production needs.
“The proposed acquisition is a sound financial proposition for its long-term viability,” it stated. “It will also limit the risk of a prospective rental rate hike.”
In 2018, Media Prima engaged into a sale and leaseback agreement with PNB Development, which included Balai Berita Bangsar and The New Straits Times Press (Malaysia) Bhd’s printing press in Shah Alam.
Today, Media Prima closed at 44.5 sen, up 0.5 sen or 1.14 percent, valuing the company at RM493.59 million./n
