KUALA LUMPUR, 15 July 2020 – Media Prima Berhad (“Media Prima” or the “Group”) would like to clarify a statement reported on 14 July 2020 in The Edge CEO Morning Brief and theedgemarkets.com article titled ‘Media Prima to end leaseback deal with PNB, vacate Bangsar Property — sources’.
The article writes the following statement: “The move is part of Media Prima’s cost-cutting measures, which will see NSTP relocate to its printing plant in Bukit Jelutong, Shah Alam at the end of the year or by middle of next year,” one of the sources told theedgemarkets.com.
We would like to clarify that as announced on 4 June 2020, Media Prima is executing the next phase of the Group’s transformation plan that is aimed to land the Group on a robust and sustainable business model for the medium to long term.
The Group has undertaken several initiatives pertaining to revising revenue models and corresponding cost management involving operational changes to address cost inefficiencies arising from work duplication. Arising from improved workflow efficiency, it has been determined that Media Prima does not require the existing space capacity. Media Prima currently operates from 4 locations, namely Sri Pentas Petaling Jaya (“Sri Pentas” – office and studios), Balai Berita 1 Bangsar (“BB1” – office), Balai Berita 2 Shah Alam (“BB2” printing plant and office), and Glenmarie Studios Shah Alam (“Glenmarie Studios” – office and studios). Total office and studio spaces for all 4 locations is over 1 million sq ft, which is above required space.
As such, Media Prima does have plans to consolidate its operations into 3 locations namely Sri Pentas, BB2 and Glenmarie Studios based on workflow and efficient space requirement.
It should be noted that Media Prima had entered into sale and lease back agreements for BB1 and BB2 with PNB Development Sdn. Berhad (“PNBD”) in 2018. Given the above, any move into consolidating Media Prima’s operations and vacating BB1 will have to be negotiated and mutually agreed by both parties based on the terms and conditions of the said sale and lease back agreements.
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