KUALA LUMPUR (Aug 2): Shares in Star Media Group Bhd dipped 1.6% at mid-morning today after the firm proposed to vary the utilisation of RM86 million — part of the remaining balance from its disposal of former subsidiary Cityneon Holdings Ltd — to be reallocated for working capital instead of future investments.
At 10.40am, Star Media dipped 1 sen to 61 sen for a market capitalisation of RM450.52 million.
The board of directors will reallocate RM86 million for working capital — repaying its trade and other payables as well as staff salaries — while the remaining RM66.5 million will still be used for future investments.
It said the allocation for working capital is expected to further enhance the cash flow and financial position of the company as well as maximise value to shareholders.