Solving TVB shares row some way off despite broadcaster increasing transparency
The SFC raised its concerns during the vetting process of a US$541 million share repurchase planned by TVB
The ongoing legal tussle between Television Broadcasts (TVB) and the Securities and Futures Commission looks set to continue with the regulator refusing to act on the broadcaster’s latest disclosure, about its shareholder structure and appointment of directors.
Analysts, however, welcomed the TVB move as they believe it will give the company more transparency.
“We have no comment,” an SFC spokesman told the South China Morning Post, on the latest clarification from TVB that it would make any change to the regulator’s decision over its share repurchase plan.
The securities watchdog first expressed concerns over the shareholder structure at TVB in May and said its major shareholder China Media Capital (CMC) may have too strong an influence appointing and removing directors of TVB.
The SFC raised its concerns during the vetting process of a HK$4.21 billion (US$541 million) share repurchase planned by TVB. The regulator did not accept TVB major shareholder Young Lion’s application for a whitewash waiver – a resolution that must be passed before a target company in a buyout situation can give financial assistance, forgive debts or provide other financial dealings to the buyer of the acquiring entity — to allow the company to be exempted from making a general offer to buy all the outstanding shares in TVB.
