Media Chinese to sell stake in One Media

by **Cals** Sat 05 Mar 2016, 03:10

Media Chinese to sell stake in One Media

By Sangeetha Amarthalingam / theedgemarkets.com | March 4, 2016 : 8:44 PM MYT

KUALA LUMPUR (March 4): Hong Kong-based Media Chinese International Ltd (MCIL)'s wholly-owned unit has proposed to sell off its 73.01% or 292.97 million shares in One Media Group Ltd to Qingdao West Coast Holdings (Internation) Ltd.

In a filing with Bursa Malaysia today, MCIL said its unit Comwell Investment Ltd entered into a memorandum of understanding (MoU) with Qingdao West Coast, largely owned by a Chinese state-owned enterprise (SOE), to facilitate the potential disposal.

"As an SOE is required by Chinese law to obtain the prior approval of the National Development and Reform Commission (NDRC) before making any outbound investment in an industry of a sensitive nature, such as news and media, and the business of One Media falls within this industry, the parties have entered into the MoU, among other things, to facilitate potential purchaser and/or its holding companies to apply for the requisite approval from the NDRC in China for the possible transaction," it said.

Under the MoU, Comwell Investment and Qingdao West Coast would use its means to procure all necessary regulatory and/or governmental approvals including but not limited to those of the NDRC, the Securities and Futures Commission, and the Hong Kong Stock Exchange, if necessary.

MCIL, also listed in the Hong Kong Stock Exchange, said both parties would negotiate in good faith till April 15 towards one another with a view that a formal sale and purchase agreement be entered by that date.

Qingdao West Coast shall place an earnest money of HK$6 million (RM3.16 million) with an escrow agent for the duration of negotiation, which could be refunded if the deal falls through or exclusivity period expires.

Trading of MCIL's securities was suspended today in view of the announcement on the MoU. It will resume trading at 9am on Monday.