KUALA LUMPUR (Feb 8): Astro Malaysia Holdings Bhd has signed a conditional joint venture (JV) agreement with Grup Majalah Karangkraf Sdn Bhd (GMK) as part of its plan to invest in the latter’s wholly-owned unit Karangkraf Digital 360 Sdn Bhd (KK30).

Astro, via its unit Astro Digital Sdn Bhd (ADSB), first signed a binding term sheet with GMK on Dec 6 to form a JV where it said it would invest RM100 million for a 51% stake in KK30.

The JV aims to pursue 360° monetisation strategies for the KK360’s content intellectual properties across multiple platforms, leveraging on Astro’s capabilities, growing reach and engagement.

It would also extend Astro’s online presence among the Malay-language audience and propel its combined monthly unique visitors to approximately 10 million, it said.

As part of the agreement, Astro said GMK will transfer its 38 intellectual properties to KK360 for RM96 million, and GMK will be issued shares in KK360 in consideration of such transfer.

Upon completion of the JV agreement, KK360 will become an indirectly-owned subsidiary of the company.

Astro’s shares closed unchanged at RM2.60 today, bringing a market capitalisation of RM13.56 billion.