Utusan’s Kosmo! price hike effective from Sunday

TheEdge Thu, Aug 22, 2019 10:31am - 1 year ago

KUALA LUMPUR: Utusan Melayu (M) Bhd, which is on the verge of being delisted from the Main Market after 25 years on Bursa Malaysia, confirmed yesterday that it will raise the price of Utusan Malaysia from RM1.50 to RM2 a copy and Kosmo! from RM1 to RM1.50, to ensure business continuity.

In a statement to the local stock exchange, Utusan said the Utusan Malaysia and Kosmo! price hikes will take effect on Friday and Sunday respectively.

“The board of Utusan wishes to announce that the company will continue to operate with its business and publish its newspapers, namely Utusan Malaysia and Kosmo!.

“As such, the board of Utusan denies the rumours that Utusan will cease its printing and operations which have been widespread in other newspapers and social media,” Utusan said.

According to Utusan’s web portal on Tuesday, citing Utusan chief executive officer Datuk Abd Aziz Sheikh Fadzir, the media group will continue its operations, despite financial challenges faced.

“It is not true that we are closing down (operations). Yes, we are having some problems, but we have plans to improve our business,” Abd Aziz, who is the single largest shareholder with a 31.61% stake, reportedly said.

The group, whose share price hit its lowest of seven sen on Tuesday, continued to fall yesterday and closed 14.29% lower at six sen, which further trimmed its market capitalisation to RM6.64 million from RM7.75 million.

Trading of the Practice Note 17 company’s shares will be suspended from next Wednesday as the group had failed to submit its regularisation plan to authorities by the Aug 19 deadline. Utusan had said it is “impossible” for the group to find potential investors to revive the business due to its huge liabilities, with total debts of RM139.19 million as at June 30.

If Utusan submits an appeal against the delisting on or before Tuesday, the delisting exercise will be deferred, pending the decision on the appeal.

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