Broadcaster's chief snares Lai Sun's holding for 16pc less than his original offer
Asia Television (ATV) chief executive Chan Wing-kee yesterday completed his acquisition of Lai Sun Development's 32.75 per cent stake in the broadcaster and 50 per cent of ATV.com for less than HK$300 million.
The price represented a discount of at least 16 per cent on the HK$360 million Mr Chan originally agreed to pay for the stakes in November last year. The price was also a third of what Tom.com was willing to pay for it in August.
'We signed on Wednesday night,' Mr Chan told the South China Morning Post. 'I am satisfied with the deal.'
The purchase lifts Mr Chan's stake in ATV from 19 per cent to about 45 per cent. Phoenix Satellite Television chief executive Liu Changle remains ATV's major shareholder, with an effective 46 per cent interest.
In August, Tom.com agreed to acquire Lai Sun's 32.75 per cent stake in Hong Kong's number two free-to-air television station for HK$886.6 million. That price was based on Mr Liu's claim that the broadcaster was worth about HK$3 billion. However, Tom.com wanted to buy additional shares from Mr Liu to take a controlling stake in ATV. But after Mr Liu raised his asking price - citing the broadcaster's landing rights in Guangdong - Tom.com scrapped its acquisition plans.
ATV is now in negotiations with the Guangdong Administration of Radio, Film and Television to share advertising revenue with Pearl River Delta cable operators, which profit by splicing out ATV's advertisements and selling the spots to local companies.