HK Mag publisher seeking investors

Asia City Media Group (ACMG), which publishes popular free weekly lifestyle magazines, including HK Magazine, across the region, is seeking new investors for a major equity infusion or even a takeover.

People in the financial industry said the privately held company had been in talks for a few months with advertising firms and private equity funds for its potential sale.

No agreement has been reached yet, said the people, who declined to be identified as the negotiations remain private.

ACMG, formerly known as Asia City Publishing Group, was founded by three media professionals - Stephen Freeman, Greg Duncan and Gretchen Worth - in Hong Kong in the late 1980s.

Its first magazine about Hong Kong, essentially a guide for tourists, was published in 1991. It was revamped and renamed HK Magazine in 1992, when it was published monthly. In 1995, the magazine went weekly.

"From a deal perspective, this is a rare opportunity for a fund to acquire a brand that is already well known in the local market," said one of the people, noting that HK Magazine's readers are mostly young people who like to travel and spend money on cosmetics or electronic gadgets.

"You can consider it as a media-sector deal, but it's also about the big potential to reach the young consumers in those major Asian cities."