KUALA LUMPUR (Aug 1): Pressured by short-term financial needs, Star Media Group Bhd has 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 purposes instead of future investments.

In a filing with Bursa Malaysia today, Star Media said the remaining balance from the disposal of Cityneon in July 2017 of RM360.18 million, stood at RM152.5 million.

The remaining balance had initially been earmarked for future investments and was targeted to be fully utilised within 24 months from its disposal.

However, Star Media said the company is still exploring investment opportunities to further complement and enhance its existing assets as well as other business opportunities which have the potential to deliver strong return on investment and value to shareholders.

The board of directors has therefore decided to reallocate RM86 million for working capital purposes — repaying its trade and other payables as well as staff salaries — while the remaining RM66.5 million will still be utilised for future investments.

It said the allocation for general working capital purposes is expected to further enhance the cash flow and financial position of the company as well as maximise value to shareholders.

Shares of Star Media closed down 0.5 sen or 0.8% today to 62 sen for a market capitalisation of RM457.48 million.