Asia Television Denies Stake-Sale Talks With China Investors
By Cathy Chan
Hong Kong, July 27 (Bloomberg) -- Asia Television Ltd., the
perpetual also-ran of Hong Kong's two free-to-air broadcasters, said it's in preliminary talks to sell a stake to overseas, not mainland, investors to broaden its shareholder base ahead of a local initial public offering.
The company is negotiating with Europe and U.S.-based media funds and companies, though pricing and valuation haven't been determined, Chief Executive Feng Xiao-ping said in an interview. He denied a report the company failed to sell a stake to China-backed investors.
``We'd never held talks with any Chinese investor,'' Feng said. ``Ideally, we want to sell shares to Europe and U.S. funds to boost our international reputation.''
Hong Kong Economic Times reported today, citing unidentified bankers, that shareholders of ATV, including Feng and Liu Changle, chairman of Phoenix Satellite Television Holdings Ltd., failed to sell stakes to China-backed investors after asking as much as HK$6 billion ($769 million) for their shares.
The broadcaster is a more attractive proposition now than it was even a few months ago. ATV, which traditionally runs a distant second in Hong Kong's television market behind Television Broadcasts Ltd., has recently stolen viewers with a Cantonese version of popular U.S. game show ``Who Wants to Be a Millionaire.''
ATV is also starting out with a clean slate after writing off HK$282 million in phony sales booked by previous management, and expects to report a second consecutive profit this year after losing money every year but one since its founding in 1973.
Despite the improvements, poor market conditions have prevented ATV from moving ahead with plans to sell HK$1.5 billion of shares to the public. The company has yet to pick an investment bank to arrange the sale, Feng said.
Out of talks with European and U.S. institutional investors, the company received about eight proposals, though it has yet to decide whether to sell new or existing shares, Feng said.
``We're still (at the) listening stage,'' he said. ``We've a more pressing target -- to sustain recent high (audience) ratings.'' |
