The proposed controversial deal between MCA's Star Publications (M) Bhd and Hume Industries (M) Bhd to acquire the latter's stake in Nanyang Press Holdings Bhd is expected to be wrapped up by the end of next week, with major changes in the Nanyang's board of directors.
Nanyang Press executive director Kuo Yok Liong told malaysiakini today that negotiations between the business partners had reached the final stage and a change in the board of directors was imminent.
"Many (directors) would not like to stay," Kuo said, when contacted.
"I would definitely leave. My employment contract is with Hong Leong, not Nanyang. Therefore, I would have to leave," he added.
Top executives to go
The deal is expected to come to a close by June 1 as MCA president Dr Ling Liong Sik is expected to leave for a business trip overseas two days later, a source who requested anonymity said.
"Everything is happening very fast, the takeover is immediate and will affect many people. MCA is worried that if this deal is delayed, strong public protest will derail the whole agreement," the source added.
The source also revealed that the top management people in Nanyang Press who are most likely to be axed are the executive director, chief editor, managing director and general manager.
Yesterday, malaysiakini reported that top-selling Chinese-language daily Sin Chew Jit Poh is planning to buy a stake in Nanyang Press, which publishes two rival newspapers, the Nanyang Siang Pao and the China Press .
While Star Publications, controlled by MCA's investment arm Huaren Holdings, has confirmed its intention to takeover Nanyang Press, it appears that Sin Chew Jit Poh 's publisher, Pemandangan Sinar Sdn Bhd, is also eyeing a minority stake in the newspaper company.
Monopoly
Media watchers have expressed fears that both deals would result in parties having similar agendas acquiring a complete monopoly of all four major Chinese-language daily newspapers in the country.
In addition to publishing Sin Chew Jit Poh - the top-selling Chinese daily with a circulation of 289,514 according to 1999 figures - Pemandangan Sinar also publishes Guang Ming Daily , which has a circulation of 100,475.
Nanyang Siang Pau had a circulation of 177,824 in 1999, while its sister paper the China Press enjoys a circulation of 204,225.
According to the sources, Pemandangan Sinar is likely to acquire an 18 percent stake from the 70 percent equity in Nanyang Press held by tycoon Quek Leng Chan's Hume Industries. The remaining 52 percent will be taken up by Star Publications.
Pemandangan Sinar is controlled by Sarawak timber tycoon Tiong Hiew King.
Yellow ribbons
Meanwhile, the source said that Nanyang employees are worried about the company's future and have started wearing yellow ribbons to express their fears. Many are expected to tender their resignations as well, added the source.
It is learned that the newspaper's top management and journalists would be wearing the ribbons as a sign of silent protest until the proposed deal is completed.
By late afternoon, the yellow ribbon campaign has received overwhelming support from the staff. Among those spotted wearing yellow ribbons are top management personnel including chief editor Wong Kam Hor.
The source said journalists in other newspapers would also be urged to don yellow ribbons in solidarity with Nanyang and China Press employees.
Yesterday, Singapore's Business Times reported that Hume Industries, which owns Nanyang Press, will pocket some RM43 million from the payout of an unusually huge dividend of over 100 percent.
It added that Hume would benefit from the cash pile, while Nanyang's lower net tangible assets would make it cheaper for MCA's Huaren Holdings to buy over Nanyang's publishing business.
The daily quoted Arab-Malaysian Securities head of research, Gan Kim Khoon as saying "It looks like a done deal. The recent 103 percent dividend payout will reduce Nanyang's net tangible assets and ultimately have a bearing on the valuation of Nanyang."