In a filing with Bursa Malaysia today, the company said the disposal is to be satisfied via a combination of cash payment and issuance of 357 million new ordinary shares of Matang.

It said the proposed disposal is expected to allow the company to unlock the value of its investment in the property and record a net pro forma gain on disposal of RM15.6 million.

Besides that, Star Media said it would also receive the consideration shares which would be allotted and issued upfront as well as diversify its interest by investing into the oil palm and plantation sectors.

The company said it had acquired the parent land on Dec 30, 2003 with the original cost of investment and the total cost of investment by the company in the property as at the latest practicable date is RM2.15 million.

On the prospects of Matang, Star Media said Matang and its subsidiaries are principally involved in the oil palm business, durian business as well as investment and property holding.