KUALA LUMPUR(July 20): A unit of Media Chinese International Ltd has entered into agreements to dispose of two companies — Beijing OMG Advertising Company Ltd and Beijing Time Resources Technology Consulting Ltd — that run magazine operations in mainland China.

In a filing with the exchange today, Media Chinese said that its indirect wholly-owned subsidiary Media2U Company Ltd has entered into agreements to dispose all of its equity interests in its direct subsidiary Beijing OMG Advertising, and its indirect subsidiary Beijing Time Resource Technology (Beijing TRT), to a third party, who is an employee of Beijing OMG Advertising.

Media Chinese has a 73.01% stake in Hong Kong Stock Exchange-listed One Media Group Ltd, whose indirect wholly-owned subsidiary is Media2U Company.  

The group added that Beijing OMG Advertising and Beijing TRT have been loss making for the past three years and they will be sold to the purchaser at a consideration equal to the aggregate value of their net tangible assets, which were not disclosed in the announcement.

The disposal will streamline One Media’s corporate structure and is also in line with its revised business strategy in the mainland China market.

In Malaysia, Media Chinese is the publisher of Sin Chew Daily, Nanyang Siang Pau, China Press and Guang Ming Daily.

Media Chinese shares closed up 0.5 sen or 1.7% today at 29.5 sen, and for a market capitalisation of RM489 million.