Star to buy 4.99% of Catcha Media for RM4.97m

KUALA LUMPUR: STAR PUBLICATIONS (M) BHD [] will acquire 4.99% or 6.636 million shares of the enlarged paid-up of Catcha Media Bhd for RM4.97 million.

“The proposed acquisition by Star is part of Catcha Media’s private placement exercise under the initial public offer,” it said on Monday, July 4, adding the issue price was 75 sen per share and would be financed from its own funds.

Catcha is scheduled to be listed on the ACE Market of Bursa Malaysia Securities on July 22.

Star said the proposed acquisition was anticipated to add value to Star’s current portfolio of high-growth media assets. At 4.99%, this means that Star would not be a substantial shareholder in the company.

“Catcha Media is a regional leader in online media and advertising sales and since Star anticipates internet advertising expenditure (adex) to grow exponentially in the next few years, this investment will position Star to strengthen its competitive edge in this sector,” it said.

Catcha Media was incorporated in Malaysia on Oct 5, 2010 as a private limited company under the name Catcha Media Sdn Bhd.

Catch Media is a media owner and operator of a magazine publishing business and an online media business. The magazine publishing business currently publishes 14 magazine titles, while the online media business sells internet advertising space to Malaysian brand owners and advertising agencies.

Meanwhile, Catcha Media reported that in the first quarter ended March 31, 2011, it recorded revenue and pre-tax profit of about RM5.728 million and about RM12,000 respectively.

It said the pre-tax profit was mainly due to the lower revenue achieved in the current quarter as a result of the seasonality associated with media business, significant increase in headcounts and associated payroll expenses in both publishing and online media business in anticipation of the growth of revenue in the future as well as the listing expenses incurred in the current quarter under review.