KUALA LUMPUR: Utusan Melayu (Malaysia) Bhd will dispose of 70 per cent of its equity interest in its wholly-owned subsidiary, Dilof Sdn Bhd to Aurora Mulia Sdn Bhd.
Dilof is the permit holder for the publication of two Malay language newspapers, namely Utusan Malaysia and Kosmo.
In a statement, Utusan Melayu said the disposal of its stake in Dilof is to ensure the continuity of the two mainstream newspapers.
“This is to ensure that (the indelible mark of) the 80-year-old Utusan Malaysia is not buried and the publication of the 15-year old Kosmo continues,” it said.
Utusan Melayu is facing cashflow problems and a financial injection in Dilof from Aurora Mulia would ensure the continued publication of both newspapers.
Aurora Mulia was chosen as it is the major shareholder of Media Prima Bhd.
"The investment will also see the consolidation of support departments such as printing, distribution and advertising for the publication of several major newspaper brands in the country. -- Bernama