The five individuals led by prominent business figure Lim Guan Teik today rejected MCA's offer of 20 percent stake in its newly acquired Chinese newspaper company, Nanyang Press Holdings.

Lim told malaysiakini that his partners agreed to turn down MCA's offer because it was "totally different" from what his consortium had sought after.

He said he expected MCA to announce their partners in Nanyang within the next few days.

On June 18, the Lim-led consortium had offered to purchase Nanyang from MCA at RM5.60 per share for the political party's entire stake in the media company.

The other four individuals are president of Hakka Association of Perak Foo Wan Thot, United Chinese School Committees Association of Malaysia (Dong Zong) chairperson Kuek Suan Hiang, Selangor Chinese Assembly Hall (SCAH) president Ngan Ching Wen and SCAH deputy president Tan Yew Sing.

MCA acquired Nanyang, publisher of two major dailies Nanyang Siang Pau and China Press, through its investment arm Huaren Holdings for RM230 million cash at RM5.50 per share.

The controversial deal had met with strong public objection as the Chinese community felt that it could impair the newspapers' editorial independence.

A boycott campaign was subsequently launched and has substantially affected the sales of both newspapers.

Following this, Ling reportedly said that the party was willing to divest a "strategic stake" to those who were interested.

Private meeting

The party chief also claimed that apart from Lim's group, there were two other proposals submitted by law firms representing undisclosed principals. However, one of the undisclosed principals had written to withdraw its proposal.

On Monday, Huaren announced that it intends to retain at least 20 percent in Nanyang.

Lim told malaysiakini that MCA made its offer during a private meeting last Thursday between him and party president Dr Ling Liong Sik.

"Dr Ling said he could offer 20 percent but added it could go up to 30 percent if we want it," said Lim who is the president of the Associated Chinese Chamber of Commerce and Industry of Malaysia.

It was learnt that party vice-president Ong Ka Ting (far left) and committee member Hon Choon Kim were also present at the meeting.

However, after discussion with his other four partners, Lim said they have decided to reject the offer.

"It was totally different from what we asked for," he said.