KUALA LUMPUR: The trading stock of Star Media Group Bhd
surged as much as 24.5% in early morning trade to 63.5 sen a share following reports that Tan Sri Tong Kooi Ong, owner of The Edge Communications Sdn Bhd, had emerged as a substantial shareholder in the company.
At the opening bell, shares in Star Media rose 4.9% to 53.5 sen a share, and took flight in active trading thereafter.
At the time of writing, the counter was the second most actively traded on Bursa Malaysia with 48.37 million shares exchanging hands.
According to filings with Bursa Malaysia, Tong has a 0.254% direct stake or 1.84 million shares in Star Media.
He has another 37.5 million shares or 5.17% indirect stake through The Edge Communications, which is a publisher of business and financial news.
According to The Edge, Tong said in an internal memo to its employees that the acquisition is purely an investment.
“This is an investment in a company whose share price and capitalisation have for several years been well below the cash it has, and the value of its property assets. It has no debt and is clearly under value,” he was quoted as saying.
Star Media's largest shareholder is the Malaysian Chinese Association (MCA), which holds a 45.35% stake in the Main Market-listed media group.
For the financial year ended Dec 31, 2022, SMG posted a net profit of RM6.92mil, or 0.95 sen earnings per share on revenue of RM217mil.
The group has proposed a first and final single-tier dividend of one sen per ordinary share in respect of the financial year ended Dec 31, subject to shareholders’ approval at the forthcoming 51st annual general meeting.
The payment date is on June 6, while the ex-date falls on May 23 followed by the entitlement date on May 24.
