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SCMP Reporter

Shaw Brothers (Hong Kong) has said its largest shareholder has proposed to buy it out  with a HK$1.33 billion  offer.
The offer comes from Shaw Holdings - controlled by Sir Run Run Shaw - which owns a 74.92 per cent stake in Shaw Brothers. It wants to buy the rest of the shares at HK$13.35 apiece.
The  acquisition  will be funded by internal resources, according to a statement filed with the Hong Kong stock exchange.
The offer price represents a premium of 64.2 per cent over the closing price of Shaw Brothers shares at HK$8.13 on December 12. Shaw Brothers shares have been suspended from trading since December 15 pending the release of an announcement in relation to a possible privatisation of the company by its controlling shareholder.
Market watchers believe the privatisation move offers a much easier way for the full exit of 101-year-old Sir Run Run, the company's founder and chairman.
In October, the company announced that Sir Run Run had ended talks to sell the controlling stake in the company, citing the weak market sentiment.
It had been rumoured that mainland property tycoon Yeung Kwok-keung was a potential buyer of Shaw Brothers.
There were rumours that  Mona Fong Yat-wah, wife of Sir Run Run and the company's deputy chairman, had asked for more than HK$10 billion for the 75 per cent stake in Shaw Brothers earlier this year, before the financial meltdown began in September.
The company believes the proposed privatisation will provide an opportunity for minority shareholders to sell their stake in the company, whose shares have a low liquidity in the market.
It also believes the plan provides an exit route for minority shareholders in the current, poor market conditions, and at a significant premium to the market price, according to the statement.
The company said  the price of the shares had dropped 60.8 per cent over the last six months compared with the 34.7 per cent decline of benchmark Hang Seng Index.
Shares of Shaw Brothers will resume trading today.



Shaw Brothers receives HK$1.33b buyout offer