Last month 28 May 2006 was 5th anniversary of 528 incident, where Nanyang was taken over by Huaren Holdings, an investment arm control by Malaysia Chinese Association(MCA).
Oriental daily run a series articles revealing what happen during that time.
Former employee of Sin Chew Daily of Tan Sri Tiong, now advisor of Oriental Daily reveal that when he was still employed by Sin Chew Daily. Tan Sri Tiong has assigned him to negotiated with Hong Leong Tan Sri Kwek in 1990an to try to acquired Nanyang but fail.
In 8 February 2001, after meeting with Tan Sri Kwek in Hong Leong HQ in KL. Managing Director(MD) of Nanyang Mr Wong was on the way back to Nanyang building. While in KESAS highway, the MD received a call informing him that a lady who claim herself representing Sin Chew's Tan Sri Tiong call Miss Sandra has come to Hong Leong HQ without any appointment requested to meet Tan Sri Kwek Leng Chan. Sources said Miss Sandra said "they" willing to negotiate any price tag offer by Hong Leong to dispose off Nanyang.
After short meeting, Sandra was told the deal was negotiable and suggested her to contact and negotiate with Managing Director of Nanyang Mr Wong. The MD was instructed by Hong Leong to handle the negotiation. However, Sandra never show up after that.
After that incident, rumors in the market said that Hong Leong was pressure to sell.
On 14 May 2001, The Edge reported that Huaren Holding intended to acquired stake in Nanyang.
On 24 May 2001, The Board of Director of Nanyang met at Hong Leong HQ. They pass resolution of shares sales and requested 9 blacklisted employee to resigned.
At the night of 28 May 2001, employee from Sin Chew Daily come and take over the management and editorial office of Nanyang.
Even on 6 August 2002, The Edge reported that Market talks have it that Mah King Hock who control 23.8% of Nanyang is a close associate of Tiong.
On 15 March 2006, Oriental Daily reported that Madigreen become the second largest shareholders of Nanyang after Madigreen acquired stake from Mr Mah King Hock. Oriental Daily also speculated that Madigreen ultimately control by Sin Chew Tan Sri Tiong. Both Sin Chew Daily and Nanyang remain low profile on shareholders changes.
Tan Sri Tiong history
Tan Sri Tiong has a history of closed down a Sarawak base newspaper after acquired by Tan Sri Tiong. Subsciber of such newspaper was replaced by subscription to West Malaysia Sin Chew Daily.
This cause East Malaysia players such as See Hua Daily (published by Datuk Seri Lau Hui Kang's KTS group) started seeing competition from Sin Chew in 1997 and started Oriental Daily to compete with Sin Chew Daily in West Malaysia.
As Nanyang is a public listed company and the fact that Tan Sri Tiong has history of close down a newspaper it acquired and replaced by Sin Chew Daily. It is unfair to minority shareholder of Nanyang as they never told whether Tan Sri Tiong would closed down Nanyang and replaced all Nanyang subscriber by Sin Chew. Nanyang should disclose it future plan to it shareholder.
My guess : Guang Ming to merge with China Press?
As there is no disclosure from Nanyang management and the history of Tan Sri Tiong above. It would be foolish if you want to buy Nanyang shares and treated as investment in Nanyang. Anyhow Nanyang result is not good at the moment. The Crown Jewels in Nanyang is China Press. China Press, China Press is now the second largest circulated Chinese newspaper, selling an average of 223,890 copies daily, including night sales, compared to Nanyang Siang Pau's 140,493.
While Tan Sri Tiong's Guang Ming Daily has a daily circulation of 137,960 copies. It is logical Tan Sri Tiong would want to close down Guang Ming Daily and replaced by China Press circulation, This can boost China Press circulation overnight, to compensate loss of Guang Ming Daily. He might close down Nanyang and replace by Sin Chew Daily. After this merger, Tan Sri Tiong would control both the upper and lower segment of Chinese newspaper market, he able to maintain both listed company Sin Chew and Nanyang(Might change to China Press)
Nanyang's strength
Nanyang full name is Nanyang Siang Pau. Siang Pau mean Business Daily, Nanyang's strength is in it business report. I like to read Nanyang business section than Sin Chew Daily, it coverage on China market and it Monday's edition all more superior than Sin Chew Daily. Thus, journalist in Nanyang's business section are expected to be able to keep their job.
TechnoratiTag: Business Commentary competitive Economics Economy Malaysia Opinion finance SharesMedia Stock Market klse
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