Economy

Markets

Industries

Insights

Reports

Events

Country Garden denies interest in TVB

By Zhao Tingting (chinadaily.com.cn)
Updated: 2008-05-21 15:57

Guangdong-headquartered property developer Country Garden denied involvement in a potential acquisition of Hong Kong's television station TVB, said the developer Tuesday in an announcement.

"We have never planned to purchase TVB, and no negotiations have been held," said Country Garden President Cui Jiangbo.

However, the announcement, in the board's name, didn't rule out the possibility that its Chairman and Executive Director, Yeung Kwok Keung may bid for a stake in TVB under his own name.

Earlier media reported Yeung had begun preparations for bidding for a stake in TVB, which has a market value of about $2.84 billion, at least six months ago .

Yeung planned to purchase the roughly 19.5 percent stake of TVB controlled by Shaw Brothers' Chairman Run Run Shaw, via his 75 percent ownership of Shaw Brothers. Shaw Brothers holds a 26 percent stake in total and is the controlling shareholder of TVB.

Funds needed for the potential purchase were originally targeted at HK$10 billion ($1.28 billion) but that is now expected to be reduced, Citigroup said.

According to China Business News, Yueng has received HK$3 billion in private financial support from Lee Shau Kee, Chairman and Managing Director at Henderson Land Development Company Limited, also one of Yueng's old friends.

Banks are arranging funding for the remainder for Yueng and more than 10 banks have been sounded out, including several Chinese and Japanese banks, Reuters reported.

The acquisition has not yet been confirmed by either TVB or Yueng, but sources said the deal is a foregone conclusion, only waiting for funds to become available.

If the sale goes through, Hong Kong's Yeung, will become the largest TVB shareholder and indirectly control the company.

The deal will not only add value to TVB, through Yueng's rich marketing network in mainland, but also to Yeung himself by owning a media company in Hong Kong, media reported.