Hong Kong commerce minister casts doubt over validity of HK$5.1b ATV rescue deal
Commerce secretary questions why share sale was completed before authorities approved it
More questions have been raised about the validity of a share sale set to save struggling broadcaster Asia Television, with the city's commerce minister querying why the deal was done before authorities approved it.
The concern was raised by Secretary for Commerce and Economic Development Greg So Kam-leung amid widespread doubts about the eligibility to own a licensed television station of the investors who bought 41 per cent of shares in ATV.
Under the city's broadcasting laws, at least half the board members of a local free-to-air broadcaster must reside in Hong Kong.
The investors will pump HK$5.1 billion into the station to boost its flagging operations, after it failed to secure a renewal of its free-to-air television licence, which expires in April.
So said yesterday the Communications Authority had received an application from ATV for changes to its shareholding structure, but it was still processing the request and no approval had yet been given.
He said according to the Broadcasting Ordinance, licensed broadcasters must seek approval from the authority for changes to shareholding structure. He questioned why the ATV deal had been completed, as claimed by the court-appointed manager responsible for seeking an investor to rescue the station.