Mogul bids on 25% of company he doesn't own
HONG KONG — Shaw Brothers founder Sir Run Run Shaw has offered to take his iconic film company private for HK$1.33 billion ($172 million).
In a filing to the Hong Kong Stock Exchange late Monday, Shaw Holdings, which is controlled by the centenarian movie mogul, tendered a bid of HK$13.35 per share for the 25% of Shaw Brothers that it does not already own.
The offer represents a premium of 64% over the closing price of HK$8.13 on Dec 15, when trading was suspended.
According to the company, the proposed buyback will allow minority shareholders to cash in their shares, which historically have had a low degree of market liquidity, as well as pave the way for an easier exit for Sir Run Run.
The 101 year-old’s efforts at divesting his interests in Shaw Brothers have recently met with obstacles. A previous attempt to sell Shaw’s 75% interest in Shaw Brothers to Chinese businessman Yeung Kwok-keung was abandoned in October due to contracting credit markets. Yeung had been unable to secure the HK$5 – 7 billion ($644 – $902 million) bank financing needed for the purchase.