Sunway to expand to digital media business

PETALING JAYA: Conglomerate Sunway Bhd is venturing into the digital media business.
In a filing with the stock exchange, Sunway said its wholly owned subsidiary Sunway Holdings Sdn Bhd (SHSB) had entered into a subscription and shareholders agreement with Alan Ow Wui Kiat, Erman Akinci and Monumental Productions Sdn Bhd to set up a joint venture (JV) to invest in the digital media business.
SHSB will hold an 80% stake in the JV, while Ow and Erman hold 10% each. The authorised and paid-up capital of the JV are RM400,000 and RM2 respectively.
SHSB also entered into a call option agreement with Ow and Erman to grant to the duo the right to purchase a total of 400,000 option shares at an exercise price of RM10 each within the option period of three years.
Sunway said the JV will be used to invest in digital media business, content and assets.
It noted that the digital media industry is growing rapidly in Southeast Asia, fueled by increased digital advertisement spending in the region.
“The proposed JV will be investing in the digital media business to capture the sizable growth opportunity,” it added.