Star Media to dispose of 64% stake in CityNeon for $115

It is selling its shares to Lucrum 1.

It's out with the old, in with the new for Cityneon Holdings as its major stakeholder Star Media is selling its entire stake in the group to Lucrum 1 Investment for a total consideration of $115.6m.

According to UOB Kayhian, the deal is conditional on the approval of its shareholders. Star Media acquired a 64.1% stake in Cityneon at S$0.61 per share in 2008.

"The transaction will allow Star Media to unlock its investment in Cityneon with a bumper disposal gain of around $68.7m. The disposal will allow Star Media to concentrate on the expansion of its primary business activities," the brokerage firm said.

It added that once the acquisition is completed, Cityneon CEO Ron Tan should have more influence and control over the expansion and future direction of Cityneon.

"In addition, we believe Cityneon could be more aggressive in M&A post the change in major shareholder," UOB Kayhian added.

Here's what you need to know about the soon-to-be new major shareholder for CityNeon.

Lucrum 1 Investment is an investment holding company controlled by three key directors. Ron Tan, CEO of Cityneon owns a 15.5% stake in the vehicle with the balance held by Chinese investment holding company Massive Right Investments Limited (76% stake) and Mutual Power International Ltd (8.5% stake).

Mutual Power International Ltd is a wholly-owned subsidiary of Hong Kong listed Jin Bao Bao Holdings Ltd. Jin Bao Bao. Jin Bao Bao specialises in the design, manufacture and sale of packaging products, provision of corporate secretarial and constancy services as well as property investment. Massive Right Investments Limited is wholly owned by Mr Geng Zhihua for the purpose of investing in high-growth potential companies.

Also Read

ST Engineering, EY sign space tech and geospatial deal to promote sustainability

ST Eng'g net profit to rise 21% in 2024 on $7.9b order book

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit