Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Aug 2): Shares of Media Prima Bhd and Hong Leong Industries Bhd slipped this morning after the companies announced that their associated company, Malaysian Newsprint Industries Sdn Bhd (MNI), has initiated creditors' voluntary winding up proceedings.

At 9.02am, Media Prima fell 2.25% or 2 sen to 87 sen with 113,900 shares done while Hong Leong Industries shed 0.96% or 10 sen to RM10.36 with 24,500 shares traded.

In separate filings to Bursa Malaysia yesterday, the two groups said MNI has appointed Lim San Peen of PricewaterhouseCoopers Advisory Services Sdn Bhd as the interim liquidator of the exercise.

"The board of MNI was of the opinion that MNI could not continue its business. MNI had been operating under very difficult market conditions, especially declining newsprint demand, and has incurred losses for the past three years," said Media Prima and Hong Leong Industries.

MNI, which is principally engaged in the manufacture and sale of newsprint, is an indirect associate of Media Prima via its 98.17%-owned The New Straits Times Press (M) Bhd (NSTP), which in turn holds 21.36% direct equity interest in MNI.

Meanwhile, Hong Leong Industries and Norwegian company Norse Skog Papers (M) Sdn Bhd each has a 33.65% stake in MNI, while another investor, Rimbunan Hijau Group — which is controlled by Sarawak billionaire Tan Sri Tiong Hiew King, owns an 11.34% stake.

      Print
      Text Size
      Share