15 August 2005
Singapore Press Holdings Limited ("SPH") announced that it has today incorporated a subsidiary, SPH MediaBoxOffice Pte Ltd ("SPH MBO") which will be held by its wholly-owned subsidiary, SPH Multimedia Pte Ltd ("SPHMM"). The authorised capital of SPH MBO is S$1 million, with an Issued and paid up capital of $2.00.
SPH has set up SPH MBO to enter into the out-of-home advertising business. This will allow the Group to offer integrated marketing solutions to our clients, leveraging on newspapers, magazines, internet, radio and outdoor advertising.
SPHMM has also today entered into agreements (together the "Proposed Transactions") with iBiz Asia Distribution Pte Ltd ("IBIZ") and its operating subsidiary, MediaBoxOffice Pte Ltd ("MBO"), whereby SPHMM shall hold 80% of the issued share capital of SPH MBO and the remaining 20% will be held by IBIZ. The Proposed Transactions also involve, inter alia, the transfer of certain assets and contracts from IBIZ and MBO to SPH MBO. The total consideration payable by SPHMM for the Proposed Transactions at completion is S$2.2 million arrived at on a willing buyer willing seller basis.
Subject to the respective conditions set out in the relevant agreements being satisfied, completion of the subscription and issue of the shares and the transfer of assets and contracts, is expected to take place within the next month.
The Proposed Transactions will be funded from SPH’s internal resources and are not expected to have any material impact on the net tangible assets per share or earnings per share of SPH for the current financial year ending 31 August 2005.
None of the Directors of SPH has any interest, direct or indirect, in the Proposed Transactions.