How much cash will the property sale generate for NSTP?

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Property Sales to Generate RM280 Million for NSTP

The sale of Balai Berita, its Kuala Lumpur headquarters, along with a printing plant in Shah Alam and a vacant plot of land, is projected to generate RM280 million for New Straits Times Press (NSTP). This capital injection is intended to provide an immediate boost to the group's cash flow, facilitating the funding of its revenue diversification strategy known as "Project Odyssey."
Details of the Proposed Sale

NSTP has entered into a conditional sales and purchase agreement with PNB Development Sdn Bhd for the disposal of these three properties. The valuation for Balai Berita stands at RM118,720,000, while the printing plant in Shah Alam is valued at RM127,900,000. The combined value of these assets underpins the total expected revenue from the transaction.
Continued Use of Premises

As part of the agreement, NSTP is proposing a rental arrangement to continue occupying both Balai Berita and the Shah Alam printing plant. The proposed monthly rental payment is RM1.38 million, with the company aiming to secure usage rights for a period of six years post-sale.
Shareholder Approval and Funding Objectives

The transaction is contingent upon obtaining approval from Media Prima Bhd's shareholders, as NSTP is 98.17 per cent owned by Media Prima. An extraordinary general meeting will be convened within 90 days to secure this necessary endorsement. The proceeds are earmarked to support "Project Odyssey," a plan aimed at diversifying NSTP's revenue streams, particularly in light of Media Prima's RM669.66 million net loss for the financial year 2017.

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How much cash will the property sale generate for NSTP?

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