Malaysian, HK papers plan merger to create media giant

Malaysia's two main Chinese-language newspaper groups plan to merge with one in Hong Kong to create a global Chinese media conglomerate owned by a Malaysian timber tycoon, according to an investment bank that drew up the proposal.

The merger will bring together Hong Kong's Ming Pao Enterprises Corp. and Malaysia's Sin Chew Media Corp. and Nanyang Press Holdings Bhd. Businessman Tiong Hiew King Tiong -- who made his wealth from timber trade in Malaysia's Sarawak state on Borneo island -- holds the biggest stake in all three companies.

The proposed new group will own, operate and publish major Chinese language newspapers and various magazines in Malaysia, Hong Kong, the U.S., Canada and mainland China, said a statement issued late Monday by investment bank CIMB Bhd.

The consolidation of the three groups is aimed at creating "a global Chinese language media group which ... will emerge as one of the largest Chinese language print media platforms," the announcement said.

The statement did not reveal any financial terms of the deal, which needs shareholders' approval.

Sin Chew Media Corp. and Nanyang Press Holdings Bhd. will be de-listed from Malaysia's stock exchange and become subsidiaries of Hong Kong's Ming Pao Enterprises Corp., it said.

The merger would bring under the control of Tiong five newspapers with a combined Asian circulation of nearly 1 million, as well as other periodicals and books. It would make him the largest Chinese language publisher outside China and Taiwan, Malaysia's national news agency Bernama said Tuesday.

Bernama quoted unidentified Sin Chew officials as saying that the merger deal is expected to be concluded by February 2008 after a shareholders meeting in the fourth quarter of this year.

It quoted the officials as saying that Tiong would hold 52-53 percent equity in the new entity. None of the six Sin Chew printing presses and Nanyang's five press would be closed.

Bernama quoted the officials as saying Sin Chew would leverage on Ming Pao to penetrate China with the ultimate intention of going into multimedia activities.

Sin Chew officials could not be immediately reached for comment.

Ming Pao is a holding company for Ming Pao Daily News in Hong Kong, Toronto, Vancouver, New York and San Francisco, each with its own edition. The Hong Kong edition has an average daily circulation of about 102,000 copies, according to 2006 figures. The company also produces other publications including current affairs, lifestyle, technology and children's magazines.

Sin Chew produces the Sin Chew Daily and Guang Ming Daily, while Nanyang publishes two newspapers, the Nanyang Siang Pau and the China Press, as well as 15 periodicals. The two newspaper groups control the majority of Chinese-language readership in Malaysia, while rival Oriental Daily takes up the remainder.

Ethnic Chinese make up about a quarter of Malaysia's 26 million people.

Once the merger takes place, Sin Chew and Nanyang will be wholly owned subsidiaries of Ming Pao, and Ming Pao will be listed on both the Malaysian and Hong Kong stock exchanges, the statement said.