Singapore Press Holdings is set to divest its media business amidst falling revenue and shareholder expectations of profitability.
The media business will be restructured into a not-for-profit entity known as SPH Media Holdings – a company limited by guarantee that is separate from SPH.
SPH will provide the new subsidiary company with initial resources and funding, with a cash injection of S$80 million, S$30 million worth of SPH shares and SPH real estate investment trust (Reit) units, as well as SPH’s stakes in four of its digital media investments
After the transfer, SPH will no longer be subject to shareholder and other relevant restrictions under the Newspaper and Printing Presses Act.
This shocking news was delivered yesterday at press conference chaired by SPH chairman Lee Boon Yang and CEO Ng Yat Chung.
The move comes as yet another embarrassment for Ng, a Singapore Armed Forces Scholar and former Chief of Defence Force.
Ng is best known for his time as CEO of Neptune Orient Lines, where he ran the shipping company into the ground.
The Singaporean shipping company was sold to a French company as losses mounted.
Ng was subsequently appointed as SPH CEO in September 2017.