Shougang Concord Grand (Group), a property investment company in which Li Ka-shing has a stake, yesterday made a $136 million offer to take over a loss-making media firm majority owned by former Securities and Futures Commission chairman Anthony Neoh and his brother. The main-board company, co-owned by Shougang Holdings and Mr Li's Cheung Kong (Holdings), plans to acquire Growth Enterprise Market-listed Global Digital Creations Holdings through a share exchange plan. 'The difficult market conditions in the local property market have caused Shougang Concord to take a fresh look at its core business in Hong Kong,' the company said in an announcement. 'The directors believe that the multimedia sector offers promising prospects and Shougang Concord has initiated projects in the sector.' Under the plan, every 10 Global Digital Creations shares will be exchanged for three newly issued Shougang Concord shares at 56 cents each, the same as its closing price on November 15 before trading in the counter was suspended for the announcement of the transaction. This translates into 17 cents per Global Digital Creations share, a 48 per cent premium on the closing price of its last trading day on October 29 and a 143 per cent premium on its net asset value of seven cents at the end of June 30. Anthony and Raymond Neoh will exchange their combined 42.3 per cent stake in the company for 8.6 per cent of Shougang Concord, making them the third-largest shareholders. Assuming all shareholders accept the offer, Shougang Concord will need to issue 240.24 million new shares, representing 20.4 per cent of its enlarged share capital. Shougang Holdings will see its holding in Shougang Concord diluted from 47.5 per cent to 37.8 per cent, while Cheung Kong will have its holding reduced from 14.2 per cent to 11.3 per cent. Investors reacted differently to the two firms, with Global Digital Creations rising 26 per cent at one stage before closing 13.91 per cent firmer at 13.1 cents while Shougang Concord fell 5.3 per cent to finish at 53 cents. Brokers said the plan was positive for Global Digital Creations as it brought in new shareholders to support operations. The company posted a loss of $27.8 million in the first nine months, following a loss of $33.14 million last year. However, for Shougang Concord, multimedia was a new business and investors became a bit cautious, the brokers said.