Hong Kong media group Next Digital jumped on Monday after it said it had agreed to sell five of its magazine titles in a deal worth HK$500m ($64.1m).
The publisher of pro-democracy newspaper Apple Daily, which was founded by colourful media baron Jimmy Lai, said it had received an indicative offer from W Bros. Investments Limited to negotiate the possible sale of its interests in five Hong Kong and Taiwan magazines. The deal will see Next Digital pocket HK$320m with the remaining HK$180m to be injected into the magazine businesses.
The company’s shares jumped as much as 59.5 per cent after trading resumed on Monday afternoon, easing to be up 34.4 per cent at HK$0.49 a share. The benchmark Hang Seng index was up 0.5 per cent.
Next Digital named the five magazines included in the deal as Next Magazine, Sudden Weekly, Face, ME! and Next+One.
W Bros. Investments Limited has paid HK$10m in earnest money for the deal. The company is owned by Wee Ho, the former owner of free newspaper Metro Daily.
Next Digital said it had agreed not to enter into discussion with or accept an offer form any other party for the assets until December 31.