F&N eyes acquisition of Penguin Random House for $8m

It will be buying Penguin's units in Singapore and Malaysia.

Singapore beverage and publishing conglomerate Fraser & Neave is the track to buying the Singapore and Malaysian distribution arms of international book publisher Penguin Random House, a company incorporated in the United Kingdom.

F&N is targeting to buy the two units for $8m, which will be payable in cash and will be funded from internal resources.

After the acquisition, Penguin Singapore and Penguin Malaysia will become indirect wholly-owned subsidiaries of F&N. The two units will also enter into a distribution agreement with Penguin Books Limited, The Random House Group Limited, Dorling Kindersley Limited, and Penguin Random House LLC.

In an announcement, F&N said that as of September 2016, the net asset value attributable to the Penguin Singapore Shares and Penguin Malaysia Shares are approximately $6.99m and $2.96m, respectively