Hong Kong's ATV inks HK$5.1b deal with mystery mainland Chinese group, but buyers credentials questioned
HK$5 billion deal with mainland consortium gives ailing broadcaster new hope, but buyers must prove their credentials to regulators first
Asia Television yesterday announced it had found a consortium of mainland investors ready to pump HK$5.1 billion into the ailing broadcaster, but questions about their credentials and whether the government will approve the transfer of ownership remained unanswered.
"[China Culture Media International] bought 41.66 per cent of shares in ATV from major shareholder Wong Ben-koon," ATV executive director Ip Ka-po said.
He revealed the new investors planned to plough a total of HK$10 billion into media businesses, including the HK$5.1 billion for ATV over six years, but was unable to provide details of the financial backers.
The Office of the Communications Authority confirmed it had received ATV's application for a shareholder change. It later added that shareholders in licensees had to comply with residency and other requirements, adding ATV had not applied for a new free-to-air licence.
Charles Mok, lawmaker for the information technology sector, noted widespread concern about the new investors' credentials, questioning whether they could meet the strict requirements for free-to-air licensee shareholders and rules restricting non-Hong Kong ownership.
