STAR about to take over The Edge for RM180mill

• If the deal is sealed, it will turn STAR into Malaysia’s biggest English language newspaper publisher.
• Although industry insiders say the merger will benefit both publications, STAR’s shareholders would likely vote down the deal as being too expensive.
• Head of Research of BIMB Securities Sdn Bhd says the selling price of RM180 million is expensive on the back of RM7 million profits per year made by The Edge.
• At the centre of the deal is Ho Kay Tat, chief operating officer and managing director of Star Publications  who was editor-in-chief and executive director of The Edge until lured to StarPub last year by new MCA president Chua Soi Lek’s team.
• The takeover of The Edge is believed to involve Huaren Holdings, which is flush with cash after selling its 40% stake in public-listed StarPub to its ultimate owner, the MCA.