The deal would see Yeung clinch Shaw Brothers’ controlling 26 per cent interest in TVB. The owner of mainland real estate giant Country Garden faces competition from Carlyle Group, Blackstone Capital and Bain Capital - although it appears unlikely the Beijing Government would sanction a foreign takeover.
The development marks the latest attempt by the octogenarian Shaw to sell his stake in Hong Kong’s dominant free-to-air television channel.
“Investors are sceptical given the history of this company,” said a media analyst.
A change of ownership into mainland hands may help TVB’s hitherto unsuccessful efforts to establish itself in China.
At present, TVB is paid a nominal sum of Rmb 50 million (US$15.3 million) for landing rights in Guangdong province. The analyst, however, estimated that the rights are worth “closer to Rmb 500 million”. TVB’s appeal to buyers lies not only in its untapped China potential, but also in its capital structure.
“It is under-geared, ” added the analyst.
Corporate giants set to face off in bid for TVB
HONG KONG - The fate of TVB's ownership remains unclear after Country Garden owner Yeung Kwok-keung failed to meet the HK$10 billion (US$1.3 billion) asking price for chairman Run Run Shaw's 75 per cent stake in Shaw Brothers.
