Grandtop International Holdings said on Sunday it would pay 800 million yuan (HK$908.5 million) for Peace International Creation, an aviation media firm that installs electronic screens in Tianjin Airlines planes.

The deal was financed through three tranches of zero-interest convertible bonds to the two sellers, which, on conversion, could own up to 42 per cent of Grandtop. Yeung, who owns 15.2 per cent, would see his stake diluted to 9.2 per cent.

There is not much information on the owners of the mainland firm. The deal was consummated with a guarantee by Meng Fei, presumably a mainland businessman, through a British Virgin Island company about whom we found no information.

The firm provided a profit guarantee of at least 150 million yuan in the first guaranteed (but unspecified) period. It promised a further 200 million yuan in the second guaranteed period and a final 300 million yuan guarantee. These guarantees must be met before they can start converting the bonds into Grandtop shares worth 300 million yuan in the first guaranteed period, 500 million yuan in the second and 800 million yuan in the final period.

The conversion price was at 38.8 HK cents per share, 3 per cent below the rights issue price of 40 HK cents that raised HK$780 million last month. Peace International's owner would initially get a 5 per cent stake in Grandtop.

The deal structure is extremely complicated. And Peace International is a virtual unknown. It was formed only in January last year to develop its aviation media technology.

With the Tianjin Airlines partnership, Grandtop/Peace International hopes to use the electronic terminals for movies, music, television programmes and an e-magazine.

We are not sure how much synergy there is, if any, between a mediocre football club and a start-up aviation media company, but we hope both don't end up stalling.

That'll be US$50 per leg

How much would you pay for extra legroom in economy class?

For Cathay Pacific Airways, it means up to US$100.

In a move to derive a bit more revenue, Cathay is charging an additional US$100 for the front row in economy class on long-haul flights and US$25 on mainland short-haul routes.

The airline is following in the footsteps of Singapore Airlines, Qantas Airways, Air France and Virgin Atlantic Airways. But it said it was trying to provide more choices to customers because there were on average two to four of those seats on each flight and they were often in hot demand.

Going while the going's good

Shareholders of NWS Holdings must have heaved a sigh of relief if the disposal of Taifook Securities is as reported.

Both Taifook and NWS were suspended from trading yesterday amid news that Taifook would be acquired by China's second-largest securities house, Haitong Securities, whose shares were also suspended yesterday.

Taifook closed at HK$4.85, or 3per cent below the reported general offer price of HK$5. NWS acquired Taifook from owner Cheng Yu-tung and related parties in April 2007 for HK$2.43 a share.

In six months, Taifook's share soared along with the markets, reaching HK$7.33 before it crashed nearly 90 per cent to 88 HK cents in November last year. But Taifook rebounded along with the broader market and has produced a nearly 300 per cent return so far this year.

That kind of volatility might not be what NWS shareholders expected when they invested in the infrastructure company, and might be eager to cash out from a securities business that has doubled its value in 2 1/2 years.

SHKP director quits

A Sun Hung Kai Properties director has quit after two years of service.

Independent non-executive director Marvin Cheung Kin-tung told the board recently he would not seek re-election because of other personal commitments.

Cheung (left) saw the most dramatic period in the property firm's history when former chairman Walter Kwok Ping-sheung was ousted by his two brothers last year. Walter Kwok remains as a non-executive director.