Brokers' Take

Singapore Press Holdings, June 9 close : $4.36(ex-e)

10 June 2004
The Business Times

GK GOH RESEARCH, June 9

SPH will acquire all magazine titles owned by Blu Inc Group, including Female, NuYou, Peak and Torque, as well as the whole issued capital of Blu Inc Holdings and certain subsidiaries.

The proposed acquisition is not expected to have any material impact on the NTA or EPS of the group for FY04.

We believe the impact on FY8/05 earnings is also immaterial. Print advertisement revenue from magazines constitutes a small part of SPH's print advertising revenue at only 2.4 per cent in FY8/03 or about S$14 million. SPH traded ex-entitlement on Tuesday and at $4.32 (equivalent to cum-entitlement price of S$21.22) is now exactly at our fair value.