Logo of Singapore Press Holdings (SPH).
Roslan Rahman | AFP | Getty Images
SINGAPORE – Singapore Press Holdings, a newspaper publisher and real estate company, announced Thursday that it will move its ailing media business to a non-profit entity.
The company’s media activities – which include the UK’s major newspapers The Straits Times and The Business Times, as well as the Chinese newspaper Lianhe Zaobao – have struggled to bring down ad revenue in recent years.
SPH’s troubles caused its market capitalization to shrink, and the company’s shares on the Singapore Stock Exchange were removed from the Straits Times benchmark last year. The STI is made up of the 30 listed companies with the largest market capitalization.
Trading in SPH shares was halted on Thursday, pending the announcement. As of Wednesday’s close, the company’s shares have risen about 58% this year.
In a statement, SPH said all media-related assets would be transferred to a new wholly-owned subsidiary named SPH Media Holdings, with initial funding including a cash infusion of S $ 80 million ($ 59.81 million ) and S $ 30 million. SPH shares.
The new subsidiary will eventually be transferred to a non-profit entity for “a nominal sum,” the company said.
SPH cited The Guardian in the UK and The Tampa Bay Times in the US as examples of media companies using the not-for-profit model.
Besides the media, SPH also operates in the real estate sector. She owns 66% of a real estate investment trust called SPH REIT, with properties in Singapore and Australia making up her portfolio.