An investor group led by local dealmaker Charles Chan Kwok-keung paid HK$6.26 billion for Shaw Brothers' stake in Television Broadcasts (TVB) last Wednesday, according to the Hong Kong Exchanges and Clearing website.
The price offered to Shaw Brothers (Hong Kong), owned by 102-year-old media mogul Sir Run Run Shaw, for its entire shareholding in the city's biggest free-to-air TV network was not disclosed last week when the deal was made.
The shareholding disclosures notice posted on the HKEx website yesterday showed Chan bought 113,888,628 shares at HK$55 per share, accounting for 26 per cent of all issued shares.
The price put the shares at a 19.8 per cent premium when compared with the HK$45.90 closing price last Wednesday.
The investor group's members included Chan, Taiwanese entrepreneur Wang Cher and Providence Equity Partners.
Chan, the chairman of ITC Corp, is a well-known dealmaker who has dabbled in the media industry before. In 2000, he was behind a takeover of Sing Pao, one of Hong Kong's oldest news publications.
Chan sold his shares in that company within two years. He is also known for his good relationship with Li Ka-shing. Wang is the daughter of Wang Yung-ching, and is one of Taiwan's richest tycoons with an estimated net worth of US$5.5 billion.
Providence Equity Partners is a United States-based private equity firm with more than US$22 billion of capital under management.
The announcement ended months of speculation over who would seize control of TVB, which Shaw founded in 1967.
Shaw gave up his executive duties in 2009 to become the non-executive chairman.
TVB said last week that Chan, Wang and Providence chief executive Jonathan Nelson would be nominated to join the TVB board on completion of the deal.
TVB is Hong Kong's biggest free-to-air TV network
Charles Chan Kwok-keung bought 113,888,628 shares - 26 per cent - at this price each in Hong Kong dollars: $55Topics: Company Founded Equity Financing