ECM Libra is maintaining its target price of RM1.69 for Media Prima Bhd stock despite the company's proposal to divest its entire 70 per cent equity in its loss-making Philippine unit,
MPB Primedia Inc, to Mediaquest Holdings Inc for US$16 million.

"The divestment of Primedia has long been talked about and anticipated.It will result in a positive impact on financial year 2009's earnings from the one-off gain.

"Forward valuations remain unchanged," it said in a research note in Kuala Lumpur today.

At this point, ECM Libra said the more important factor for valuation of Media Prima's stock is acceptance by the shareholders of The New Straits Times Press (M) Bhd (NSTP), on the takeover offer made by the group last Friday.

"We maintain our target price and call on the stock until any further announcements are made on the offer to the NSTP shareholders," the research firm stated. - Bernama