Tuesday, 9 May 2017

(The Star) Media Prima primes into digital space

PETALING JAYA: Digital media group REV Asia Bhd has proposed the disposal of its subsidiary REV Asia Holdings Sdn Bhd to Media Prima Bhd and Youth Asia Sdn Bhd for RM105mil.

Under the sale and purchase agreement, Media Prima will pay RM73.5mil for a 70% stake in Rev Asia Holdings and fork out RM31.5mil for the remaining 30% stake to Youth Asia.

Of the RM73.5mil paid by Media Prima, REV Asia has allocated RM59mil to be distributed to its shareholders.

REV Asia Holdings’ portfolio, which comprises brands such as, JUICE, OhBulan!, 8share and KLIPS, will be fully injected into Media Prima’s integrated media platform.

This confirms a StarBiz report on Monday that Media Prima is looking to buy digital media portals belonging to REV Asia Bhd, itself a unit of Internet company, Catcha Group.

In a press release yesterday, REV Asia Holdings managing director Voon Tze Khay said the combined group reach of Media Prima and Rev Asia Holdings will amount to 10.4 million visitors a month.

“I am looking forward to working closely with Media Prima Digital as both companies share the same vision.

“I am confident that the integration of all REV Asia Holdings’ employees will occur smoothly,” he said.

Meanwhile, Media Prima in a Bursa filing said that the proposed acquisition was expected to provide it with an opportunity to solidify its presence in the digital publishing business, which in turn is expected to facilitate the continued growth of the enlarged group moving forward.

The purchase of REV Asia Holdings will be made via internally generated funds.

Media Prima group chief financial officer Mohamaad Ariff Ibrahim said the acquisition is timely as the group has embarked aggressively on digital based initiatives to reduce dependency over traditional revenue base.

“The strategic acquisition of REV Asia Holdings demonstrates our firm commitment to capitalise on the growing demand for digital content amongst consumers by expanding our reach and further enhancing the group’s competencies in digital content marketing, digital content curation and digital native marketing ads.

“The acquisition is expected to result in the growth of revenue contributions from Media Prima’s digital platform exponentially,” he said.

Rev Asia Bhd, formerly known as Catcha Media Bhd, started as a traditional media company specialising in magazines. In 2007, it started to focus on digital and online media segment.

Catcha Media then began its strategic move towards becoming an online business, eventually forming REV Asia Holdings through a RM60mil merger with in 2013.