Tom Group yesterday sold a 35 per cent stake in its outdoor media unit to Singapore Press Holdings for $202.8 million, but it refused to comment whether the deal was to prepare for the purchase of a leading web portal in the mainland.
Tom chief executive Tommei Tong Mei-kuen said the Li Ka-shing-controlled group would retain 65 per cent of Tom Outdoor Media Group.
The sale was closed after more than six months of discussions based on an implied value of about $819 million.
'Singapore Press has strong media expertise and customer base. We want to establish a long-term strategic partnership and this is just the start,' Ms Tong said, adding the company would benefit from having additional resources to increase its mainland business.
In response to rumours that it was seeking a stake in Sina Corp, Tom insisted 'there are no written or verbal understanding or agreements relating to the intended acquisitions or realisations'.
Under the deal, Singapore Press will gain access to the mainland's outdoor media market through Tom's unit, which owns a billboard network of 300,000 square metres spanning more than 60 cities.
