TVB sale founders on market turmoil
Plans to sell a chunk of Hong Kong’s TVB have become the latest media casualty of the global financial crisis. Founder Sir Run Run Shaw has ended talks with China’s Country Garden after the bidder failed to find finance for the 26% stake in TVB, which celebrated its 40th anniversary last year (pictured, left).
Country Garden’s chairman Yeung Kwok Keung had agreed to pay some HK$10 billion (US$1.3 billion) for 75% of Shaw Brothers, whose main asset is the 26% TVB stake. But the “present tumultuous situation in the financial markets” has led to the deal being axed. The deal was reportedly being financed in cash, with the prospective purchaser seeking a HK$7 billion loan.
Another problem was the fall in value of Country Garden itself over the last few weeks, with the company's share price falling by around 80%, again making it hard for the bidder to raise finance for the TVB deal.
TVB is one of Hong Kong’s leading broadcasters. The collapse of its sale comes after the auction of another Hong Kong-based business – the media and telecoms arm of PCCW – was shelved at the weekend, again due to the lack of funding available to bidders.