PETALING JAYA: Sunway Bhd is proposing a joint venture to tap into the growing digital media industry.
The real estate conglomerate said in a Bursa Malaysia announcement that wholly owned subsidiary, Sunway Holdings Sdn Bhd (SHSB), yesterday had entered into a subscription and shareholders agreement with Alan Ow Wui Kiat and Erman Akinci, as well as the JV company Monumental Productions Sdn Bhd, with the intention of establishing a joint venture via the JVCo to collaborate as partners for the purpose of investing in digital media business content and assets.
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According to Sunway, the intended principal activities of the joint venture would be the operations of media intellectual property acquisition/investment and management.
“The digital media industry is growing rapidly in South-East Asia, fuelled by increased digital advertisement spending in the region,” Sunway said.
Under the proposed JV, SHSB would own an 80% stake in the joint venture, while Ow and Akinci would respectively own 10% each.
Sunway will fund its share of equity participation in the partnership via internally generated funds.
Meanwhile, SHSB had also entered into a call option agreement with Ow and Akinci for the purpose of granting to the duo the right to purchase the option shares at an exercise price of RM10 each within the option period of three years.
