Ming Pao venture paves way for sales foray into mainland

The publisher teams up with Redgate to secure back-door access to China's growing media market

One of Hong Kong's largest newspaper publishers will establish a joint venture in an effort to secure back-door access to China's rapidly growing media market, potentially paving the way for three of its popular magazines to be sold in the mainland for the first time.

Sources said Ming Pao Enterprise Corp, publisher of Hong Kong's fifth-largest daily, would inject Ming Pao Weekly, City Children's Weekly and Hi-Tech Weekly into a venture it was launching with Redgate Media.

Redgate, founded by former Time Warner executive Peter Brack, will contribute its Media2U subsidiary, which has the mainland licences for four western publications including Popular Science, gadget magazine T3, Digital Camera and Top Gear, a motoring title owned by the BBC.

Under a reverse-takeover deal, Ming Pao will receive $500 million to $600 million and 60 per cent of the joint venture. Redgate will own the remainder and lead the new company's management. Ming Pao hopes to benefit from Redgate's experience in securing mainland licences.

'It is not about the money [for Ming Pao],' said one source close to the deal. 'It is about access to the mainland market.'