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SCMP Reporter

A MALAYSIAN tycoon and his family have agreed to up their stake in troubled Ming Pao Enterprise Corp by purchasing a further 35.9 per cent of the publishing company in a deal valued at HK$493.07 million.

The conditional cash offer agreed to yesterday will see the low-profile Datuk Tiong Hiew King, founder of the powerful Malaysia-based Rimbunan Hijau Group, and his family acquire 128.07 million shares at HK$3.85 per share from former chairman Yu Pun-hoi.

The acquisition price represents a premium of about 5.5 per cent to the closing price of the shares yesterday at HK$3.65.

  Conducted through a Bermuda-registered vehicle company named Conch Co, the purchase will raise the stake of Mr Tiong 'and persons acting in concert' to a majority shareholding of more than 50 per cent, Ming Pao said in a statement last night. Mr Tiong's company will itself hold a 46 per cent stake, mandating a general offer in the company. The deal is to be completed by October 12.

Last night's announcement put an end to months of speculation as to who would take over the publishing group.

 It has been plagued by troubles since it was revealed its chairman had concealed his criminal past and auditors raised concerns over loans to undisclosed parties.

Mr Tiong, who already holds 36 million shares in Ming Pao, representing 10.1 per cent, has put down a HK$65 million deposit, Ming Pao's statement said.

The tycoon's Rimbunan Hijau Group was founded in 1975 as a timber contractor and has operations in Malaysia, China, Papua New Guinea, Australia and New Zealand, employing more than 20,000, Ming Pao said.

The group already runs the national Chinese language newspapers Sin Chew Jit Poh and Guang Ming Ribao in Malaysia, and English-language newspaper The National in Papua New Guinea.

Mr Tiong is also a shareholder and board member of two regional newspapers in Sarawak, Malaysia, the Chinese-language See Hua Daily News and English-language The Borneo Post.

Because of his publishing interests, Ming Pao's statement said, the Stock Exchange had requested Mr Tiong 'provide a submission which will contain a proposal as to how such business may be rationalised'. It did not elaborate.

Mr Tiong, originally from Fuzhou, China, and who has a personal wealth of more than M$2 billion, (HK$6.16 billion) bought a 10 per cent stake in Ming Pao in January from Mr Yu's private investment company, CIM, through the vehicle company Conch.

Together with his four brothers, Mr Tiong dominates the Rimbunan Hijau board.

His Kuala Lumpur-listed timber company, Jaya Tiasa Holdings, contributes 70 per cent of the group's turnover of more than US$1 billion (HK$7.73 billion) a year.

The cash offer has come in the wake of revelations about possible bad loans made by Ming Pao.

Its auditors qualified the company's annual report, saying there were doubts over the recoverability of some of loans made in Mr Yu's tenure as company chairman.

The publishing group's statement said Mr Tiong would name a new chairman and further directors when the deal was finalised.

Ming Pao said Mr Tiong would take steps to ensure 25 per cent of the shares stay in public hands.

 Shareholder Dr Louis Cha, however, decided not to sell his 10.9 per cent stake but his shares are subject to an agreement that would allow Mr Yu to buy the shares in instalments up to the end of next year.

Director Oei Hong Leong and his associates also declined to sell their 11.3 per cent stake, as did former employees of Mr Yu's CIM, who will maintain their one per cent.

FLURRY OF CORPORATE DEALS MAKE BIG NEWS AFTER 36 YEARS IN PUBLISHING 1959 BUSINESS was founded by partners Louis Cha and Shen Pao-sing to publish Ming Pao Daily News 1964 Ming Pao Daily News Ltd established to take over the business 1991 Ming Pao Enterprise Corp (Ming Pao) incorporated in Bermuda as the holding company of the group in January, publicly listed in March 1992 MPH, a 60 per cent owned by CIM and 40 per cent owned by Louis Cha, bought 52.4 per cent of Ming Pao Ming Pao acquired 50.7 per cent interest in listed South Sea Development, a property and hotel business 1993 Louis Cha disposed his 40 per cent stake in MPH, which owns 41.67 per cent of Ming Pao, to CIM Demerged its entire 72.87 per cent interest in South Sea to concentrate on publication and tour group December: Agreement struck between Louis Cha and CIM which would see Louis Cha transferring 48.49 million shares in Ming Pao within 36 months from date of agreement 1994 Bought controlling stake in Chinese magazine Yazhou Zhoukan Ventured into media-related business in China with the setting up of a printing facilities in Shenzhen Disposed of the loss-making Hong Kong Today Newspapers October: Chairman Yu Pun-hoi censored by the Hong Kong Stock Exchange for failing to disclose his conviction in Canada 15 years ago, resigned as chairman and director Listed China Strategic Holdings bought a substantial stake in Ming Pao from CIM Oei Hong Leong, chairman of Ching Strategic Holdings, appointed as chairman and director of Ming Pao December: According to the December 1993 agreement, CIM purchased 9.69 million shares from Cha 1995 August: Ming Pao reported 7.7 per cent fall in attributable profits to $147.4 million; accounts qualified by auditors concerning the recoverability of loans of $296.2 million August: CIM defaulted on payment to Louis Cha as its second instalment for his shares August: Trading in Ming Pao shares suspended on negotiations of a possible sale of CIM's stake September: Mr Oei resigned as chairman of Ming Pao Trading in Ming Pao shares suspended on negotiations of a possible sale of CIM's stake in Ming Pao 



Tycoon buys $493m stake in Ming Pao