Speaking at a virtual dialogue organised by Sias, or the Securities Investors Association (Singapore) to address shareholder queries on Thursday evening, he said that options such as privatisation or selling the media business had indeed been considered.
However, any party that takes over the media business will be subject to the same challenges the company is facing in the media landscape, particularly the secular decline in print advertising revenue. Being in a commercial company whose shareholders expect a fair return was therefore not viable for the media business, said Mr Ng.
Transferring the entire media-related business to a company limited by guarantee, or CLG, will allow profits to be reinvested in the company rather than being distributed to shareholders.
"So this is how we came to a solution that requires us to find a sustainable future for the media business," he said. He added that the CLG model will present more opportunities for the business to raise funds.
https://tinyurI.com/33ksmuxn
However, any party that takes over the media business will be subject to the same challenges the company is facing in the media landscape, particularly the secular decline in print advertising revenue. Being in a commercial company whose shareholders expect a fair return was therefore not viable for the media business, said Mr Ng.
Transferring the entire media-related business to a company limited by guarantee, or CLG, will allow profits to be reinvested in the company rather than being distributed to shareholders.
"So this is how we came to a solution that requires us to find a sustainable future for the media business," he said. He added that the CLG model will present more opportunities for the business to raise funds.
https://tinyurI.com/33ksmuxn
