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Television Broadcasts (TVB) has announced plans to spin off its Internet and satellite broadcasting arms on the Growth Enterprise Market.

 The restructuring plan calls for Internet unit TVB.com, and Galaxy Satellite Broadcasting, to be held under the new listed vehicle, NewCo, along with the Shaw Brothers film archive.

 Shaw Brothers recently sold its film library for HK$600 million to East Asia Filmed Entertainment, one of Malaysian tycoon T. Ananda Krishnan's group of companies.

 Before NewCo's listing, TVB will hold 62.13 per cent of NewCo. Mr Ananda will control 36.09 per cent through his television companies Measat Broadcast Network Systems and Astro Broadcast Corp and investment company Pacific Investments.

 The remaining 1.78 per cent will be held by private Dutch investment company Home Net.

 Shaw Brothers - which holds a 26.65 per cent stake in TVB - has an option to acquire one-third of East Asia for an initial HK$200 million, which would translate into a 4.57 per cent stake in NewCo upon completion of the restructuring.

 If the option was exercised, Mr Ananda would control 31.52 per cent through his three companies.

 The listing is conditional upon TVB being awarded a pay-TV licence by the Government.

 TVB controller C.F. Ho said a government decision was expected by the end of June. He did not rule out listing on Nasdaq as well, as investors had expected.

  'There is nothing precluding us from going to Nasdaq,' Mr Ho said.

 'If a dual listing is advised from the investment managers, we will think about it.'  Galaxy Satellite Broadcasting and the film library were included in the listed vehicle to make it more appealing to investors over other purely Internet ventures.

 'If we are just TVB.com, then we are just another dotcom,' Mr Ho said.

 Analysts believe NewCo may be worth HK$5 billion.

 TVB shares bucked the Hang Seng Index, rising more than 1 per cent.



TVB plans listing for Internet arm, Galaxy Satellite