Phoenix Media founder sells almost all his shares to Beijing-backed publisher and Pansy Ho’s Shun Tak in deals worth US$149.2 million

Liu’s Today’s Asia has agreed to sell a 21 per cent stake to Bauhinia Culture and a 16.9 per cent stake to Common Sense, which is owned by Shun Tak

At 61 HK cents per share, the deals represent a 21.8 per cent discount to Friday’s closing price of 78 HK cents

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Liu Changle owned 1.9 billion shares, or 38.08 per cent of Phoenix, according to disclosures to Hong Kong Exchanges and Clearing. Photo: Edward Wong

Published: 7:03pm, 18 Apr 2021Updated: 7:54pm, 18 Apr 2021

Liu Changle, the founder and chairman of Hong Kong-based Chinese broadcaster Phoenix Media Investment, has agreed to sell almost all of his stake in the company via two deals worth HK$1.156 billion (US$149.2 million) in total.

Today’s Asia, a company wholly-owned by Liu, signed a conditional framework agreement for the sale of 1.05 billion shares – a 21 per cent interest – to Bauhinia Culture Holdings on Thursday, and another agreement for the disposal of 845.44 million shares – a 16.93 per cent stake – to Common Sense on Friday, the company said late on Saturday. Today’s Asia will no longer be a shareholder after the share disposal.

According to a filing with the Hong Kong stock exchange on Sunday, Bauhinia is buying the stake for HK$640 million and Shun Tak, which owns Common Sense, is buying its shares for HK$516 million, both at 61 HK cents per share. The sale price per share represents a 21.8 per cent discount to Friday’s closing price of 78 HK cents.

The filing did not say whether Liu would remain Phoenix’s chairman and executive director after the transactions.

“The board does not expect the proposed [shares transfers] will have any negative impact on the business operations of the company,” Phoenix said in the filing on Sunday.

The share sale, the biggest shareholding overhaul in loss-making Phoenix’s history, comes during a challenging time for Hong Kong media companies. These firms are struggling to stay afloat amid a prolonged slump in advertising caused by the city’s worst recession on record. Hong Kong has been hit by a combination of the US-China trade war, almost a year of anti-government protests and now the coronavirus pandemic, in quick succession.

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Phoenix Media founder sells almost all his shares to Beijing-backed publisher and Pansy Ho’s Shun Tak in deals worth US$149.2 million

Liu’s Today’s Asia has agreed to sell a 21 per cent stake to Bauhinia Culture and a 16.9 per cent stake to Common Sense, which is owned by Shun Tak At 61 HK cents per share, the deals represent a 21.8 per cent discount to Friday’s closing price of 78 HK cents

Liu’s Today’s Asia has agreed to sell a 21 per cent stake to Bauhinia Culture and a 16.9 per cent stake to Common Sense, which is owned by Shun Tak

At 61 HK cents per share, the deals represent a 21.8 per cent discount to Friday’s closing price of 78 HK cents