Property tycoon to pay $1.8b for TVB stake

Property tycoon to pay $1.8b for TVB stake

 

HONG KONG – THE chairman of China’s Country Garden Holdings has agreed to pay US$1.3 billion (S$1.77 billion) for 26 per cent of Hong Kong’s main broadcaster TVB, the Financial Times (FT) reported yesterday.

Mr Yeung Kwok Keung, chairman of the property developer, was the only bidder to meet shareholder Run Run Shaw’s criteria, beating Blackstone and Carlyle to the coveted stake, the paper said.

 

Banks are now arranging funding for Mr Yeung, bankers told Reuters Basis Point last week.

 

In May last year, talk that Mr Shaw might sell his slice of TVB ahead of his 100th birthday in October sent its shares to a record high.

 

On Monday, shares in Shaw Brothers – which owns the stake in TVB and is 75 per cent-held by Mr Shaw – jumped 5.5 per cent, while TVB stock slid 1.4 per cent.

 

Film and entertainment conglomerate Shaw Brothers said last week that its controlling shareholder was in talks to sell his stake in Shaw Brothers, rather than TVB.

 

Mr Shaw had agreed to sell to Mr Yeung because he was the only buyer to meet requirements that the deal be worth no less than HK$10 billion (S$1.77 billion) and financed by cash, the FT cited people familiar with the deal as saying.

 

The news comes after a Hong Kong newspaper reported on Monday that Mr Lee Shau Kee, chairman of Henderson Land, was providing HK$3 billion to finance Mr Yeung’s bid.

 

Source: Straits Times

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