Mediacorp Singapore has entered into an agreement with Singapore Press Holdings(SPH) to buy its minority shareholdings in Mediacorp's entertainment television and newspaper businesses.
This is the second deal involving the country's two main media companies this month.
Earlier this month, SPH and Mediacorp announced an alliance to sell digital advertising on various media properties.
The purchase, valued at S$18 million, will involve Mediacorp buying SPH's 20 percent stake in Mediacorp TV Holdings Pte Ltd which owns Channels 5, 8 and U and Mediacorp Studios; and 40 per cent stake in Mediacorp Press Pte Ltd, which operates the TODAY newspaper.
Completion of the deal is subject to regulatory approval and scheduled for the end of September 2017.
Once completed, both entities will become wholly owned subsidiaries of Mediacorp.
The agreement comes 12 years after SPH purchased the stakes as part of a media industry asset consolidation in 2005. During the consolidation, SPH transferred a TV channel to Mediacorp and took a 20 per cent stake in Mediacorp TV Holdings. SPH merged its free newspaper STREATS with TODAY, and invested in a 40 per cent stake of Mediacorp Press.
Mediacorp has the widest range of media platforms in Singapore spanning digital, television, radio, print and out-of-home media. It pioneered the development of Singapore’s broadcasting industry, with the radio broadcast in 1936 and television broadcast in 1963.
Incorporated in 1984, SPH owns newspapers, magazines, online classified businesses, two English radio stations and one Chinese radio station.