Wah Tak Fung switches to satellite operating sector
Wah Tak Fung Holdings intends to increase its stake in Hong Kong Satellite Technology Holdings to about 10 per cent from the present 1.99 per cent.
Wah Tak Fung chairman David Chu Yu-lin said the move would help his debt-laden firm switch from being a property investor to a satellite operator.
He said it had not decided whether the stake increase would be facilitated by placing Wah Tak Fung shares.
Mr Chu has a 70 per cent interest in Hong Kong Satellite Technology Group (HKSTG) through holding company Hong Kong Satellite Technology Holdings.
Israel Aircraft Industries, China Aerospace Science and Technology and Sina Satellite Communications each hold 10 per cent of HKSTG.
Mr Chu said he hoped to bring a strategic shareholder into the holding company, which was valued at US$1 billion, in the next two weeks.
He said a listing of the Hong Kong-based satellite business was also planned for the future in light of the sector's rapid growth.
He said the company would talk to the Office of the Telecommunications Authority about a licence for direct-to-home television broadcasting services.
Mr Chu, speaking after a special shareholders meeting, said he was confident of the prospects for the satellite business in Hong Kong.
Meanwhile, Wah Tak Fung aims to reduce its HK$270 million debt in the next six months by selling property.
The company said its properties were valued at HK$360 million.
However, Mr Chu admitted property sales would be slow because of weak market sentiment.
He expected sales could raise about HK$150 million. Mr Chu himself would take on the remaining HK$120 million bank loans.
Mr Chu said the loss-making company had total assets of HK$670 million.
