Hong Kong’s TVB gets nod to sell minority stake to finance firm as it seeks funds for new productions
- Communications Authority says it has approved an application by TVB to allot 8.7 million new shares to GF Global Capital
- In a separate deal, the broadcaster will issue 20 million new shares to its biggest shareholder, Shaw Brothers Limited
The Communications Authority said on Tuesday that it had approved an application by the broadcaster to allot 8.7 million new shares at HK$3.36 each to GF Global Capital, a Hong Kong investment trading company, for HK$29.4 million.
GF Global’s ultimate parent is GF Securities, a financial firm with investment banking and wealth management services, which is listed in Hong Kong and Shenzhen.
“In approving the application, the authority is satisfied that after completion of the shareholding changes, TVB will continue to comply with all applicable regulatory requirements … and be able to honour the investment and programming commitments it has made under its licence,” it said.
In an announcement on May 13, the broadcaster said it had struck a deal with GF Global to sell the minority stake, which represented about 2 per cent of the total number of issued shares or 1.96 per cent of the enlarged share capital, pending shareholders’ approval.
At HK$3.36 per share, the sale meant a 9.92 per cent discount to the last traded price of HK$3.73 on May 13. The stock closed on Tuesday 1.86 per cent lower at HK$3.69.
In a separate deal, the broadcaster will issue 20 million new shares to its biggest shareholder, Shaw Brothers Limited (SBL), at HK$4 per share, marking a 7.24 per cent premium to the last traded price.
