Sun Media Group Holdings will end its parent-subsidiary relationship with Leadership Publishing by giving away its entire 63 per cent interest in the Chinese-language publisher to Sun Media shareholders, less than one year after acquiring a majority stake in the firm. As part of a restructuring plan, Sun Media will again turn its focus to education and culture content production, a unit headed by the company's high-profile chairwoman Yang Lan, according to a well-placed source. 'In the future, Sun Media does not need to consolidate the financial statement with Leadership Publishing,' the source said. Last December, the main board-listed company acquired a controlling stake of Leadership Publishing - formerly Sing Pao Media - for $92.9 million in a bid to develop it into a multimedia group. The restructuring was seen as an admission by Sun Media it failed to manage a diversified business. The decision to offload its stake in Leadership Publishing was expected to boost Sun Media's share price in the short term. However, the development direction of the group remained unclear. The firm was still losing money, said Louis Wong, head of research at Phillip Securities, adding there was a big question mark over the company's growth driver. Trading in both companies shares was suspended yesterday, pending an announcement of the restructuring plan. In the past 12 months, Sun Media planned to buy outdoor media companies, bring overseas television content to its Sun TV channel and sell its stake in the channel. However, few of the plans had been finalised. The central government last year suspended the broadcaster's restricted landing rights because its proposed partnership with Taiwanese broadcaster Eastern Broadcasting violated licensing conditions. The landing rights were restored in May this year after Sun Media scrapped the joint venture. Sun Media said its loss for the year to June widened 424 per cent to $364.86 million, largely due to the increase of bad debt provisions from $40 million to $120 million, while Leadership Publishing narrowed its first-quarter loss 35 per cent from $35.08 million to $22.8 million. It is yet to be decided who will become the majority shareholder of the publisher after the restructuring.