Astro to acquire Capital FM for RM42m

PETALING JAYA: Astro Malaysia Holdings Bhd has proposed to acquire the radio broadcasting station Capital FM Sdn Bhd from Star Media Group Bhd and Star RFM Sdn Bhd for RM42 million.
In a filing with Bursa Malaysia last Friday, the group said its unit Measat Broadcast Network Systems Sdn Bhd (MBNS) has entered into a conditional sale and purchase of shares agreement (SPA) with Star Media and Star RFM.
Upon completion of the proposed acquisition, MBNS will have an effective equity interest of 100% in Capital FM.
Astro said the proposed acquisition is an effective way to expand its current reach and content formats to target new audiences, as well as increase advertising revenues, which is consistent with the company’s strategic and financial objectives.
The group said MBNS intends to use internal funds for the proposed acquisition as well as the funding requirement of Capital FM.
The group said it expects the proposed acquisition would not have any material effect on its earnings, net assets and gearing for the financial year ending Jan 31, 2017.
“The completion of the transaction remains subject to regulatory approvals that may be required for the proposed acquisition,” it added.
Currently, Capital FM holds a content applications service provider (CASP) individual licence that enables it to broadcast both Capital FM and Red FM radio stations.
Post completion of the proposed acquisition, Astro said MBNS intends to rebrand and broadcast these two radio stations via on-air and online platforms.