SPH realigns Blu Inc companies - Jul 06, 2005 (BT)

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The Straits Times / The Business Times News On SPH

SPH realigns Blu Inc companies

Indonesia under M'sian unit; China under S'pore unit.

Jul 06, 2005
The Business Times

SINGAPORE Press Holdings (SPH) announced yesterday that its wholly owned subsidiary, SPH Magazines, has on Monday realigned its Blu Inc Group of companies.

SPH Magazines and joint venture partner Simpletech transferred each of their 50 per cent stake in the capital of Blu Inc Overseas to their Malaysian operations under Blu Inc Holdings Malaysia, in exchange for proportionately more shares in the Malaysian company.

SPH Magazines will maintain its 50 per cent stake in Blu Inc Holdings Malaysia.

At the same time, the entire share capital of Blu Inc Ventures, which was formerly held under Blu Inc Overseas, was transferred to Blu Inc Media for the consideration of $1.

Blu Inc Holdings Malaysia will now concentrate on developing business operations in Malaysia and Indonesia, while Blu Inc Singapore will concentrate on business operations in Singapore and China.

SPH acquired Blu Inc Group's publishing business in September last year for $32.9 million in a move to become a major magazine publisher in the region.

With the move, SPH Magazines has gained control of all the magazine titles, trade names and marks owned by Blu Inc, as well as the companies Blu Inc Holdings, Blu Inc Media, Blu Inc Publishing, Blu Inc Ventures and Magazines Incorporated.

The realignment is not expected to have any material impact on the earnings and net tangible assets per share of SPH for the financial year ending Aug 31, 2005.

The Blu Inc transactions are the latest in a series of moves by SPH Magazines. In May this year, the company incorporated a wholly owned subsidiary in Hong Kong. SPH Magazines (HK) will be involved in publishing and distribution, editorial services, and investment holding.

And earlier in January, SPH Magazines acquired 9 per cent of Thai media group Traffic Corner Holdings and 49 per cent of its subsidiary, Traffic Corner Publishing Company, with an estimated total investment of about 148.3 million baht (S$6.3 million).