PETALING JAYA: Astro Malaysia Holdings Bhd wants to acquire 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), had entered into a conditional sale and purchase of shares agreement (SPA) with Star Media and Star RFM.
According to a report in The Sun, upon completion of the proposed acquisition, MBNS will have an effective equity interest of 100 per cent in Capital FM.
Astro said the proposed acquisition would expand its reach, as well as increase advertising revenue.
It said MBNS intended to use internal funds for the proposed acquisition as well as the funding requirement of Capital FM, according to The Sun.
“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 individual licence that enables it to broadcast both Capital FM and Red FM radio stations.
Post completion of the proposed acquisition, Astro said MBNS would rebrand and broadcast these two radio stations via on-air and online platforms.