Despite holding a licence to operate a domestic pay TV service, PCCW chairman Richard Li Tzar-kai believes his deal involving a controlling stake in the Hong Kong Economic Journal does not violate rules that forbid media cross-ownership.
Mr Li said yesterday the deal did not violate any media rules as he was buying a stake in the paper only as 'a settler of a trust'.
In terms of the deal, 50 per cent of the newspaper will be owned by a new company that will operate the Hong Kong Economic Journal. The other 50 per cent would be held by the newspaper's founder Lam Shan-muk, his wife, Lam Lok Yau-mui and columnist Cho Chi-ming.
A five-member board of directors has been appointed by the new company. Mr Li's trust company, Clermont Media, will appoint three directors to the board - Mr Li's business partner, Morris Ho, former Television Broadcasts executive Robert Chan, and Wesley Chan.
Clermont Media will pay HK$280 million for its 50 per cent stake and not HK$250 million as stated in earlier reports.
The deal follows an agreement by Mr Li to sell a 22.66 per cent stake in PCCW to former investment banker Francis Leung Pak-to.