×
You will be redirected back to your article in seconds

Li Ruigang Runs Out of Time in Controversial TVB Takeover

TVB, Hong Kong’s leading free-to-air broadcaster, has called off a controversial share buyback plan. The scheme would have made Chinese mogul Li Ruigang the dominant force at the group.

The plan has been on the table for a year. But Hong Kong’s media regulator, the Communications Authority, has failed to give its ruling on the takeover bid.

Under the plan, announced as preparing the company for the digital age through reorganization, TVB was to have bought up some 31% of its own shares for HK$4.12 billion. It was structured so that Young Lion, of which Li’s China Media Capital controls 79%, would increase its ownership of TVB from 26% to 41%.

In normal circumstances, that should have triggered a full takeover bid for TVB. But Li and CMC obtained an exemption from Hong Kong’s stock market regulators.

Two other problems remained. The buyback was opposed by TVB’s second largest shareholder, financial group Silchester International. Second, as a mainland Chinese who is not resident in Hong Kong, Li would not normally be allowed to control a Hong Kong media company. The Communications Authority was required to deliberate, but did not manage to come to a decision in time for the bid to go through.

TVB said that it would continue to assist the Communications Authority with its enquiries. Li is already TVB’s vice chairman and non-executive director. His suitability for the role was previously in doubt as Li’s boardroom position at global advertising agency WPP also contravenes Hong Kong media regulations.

TVB also said that it would revisit the idea of a repurchase offer and look at other ways of achieving its commercial goals. At noon on Wednesday, after they resumed trading, shares of TVB rose by 1.8% to HK$27.7 apiece.

More Biz

  • Jussie Smollett Good Morning America

    Jussie Smollett Angrily Denies Complicity in Attack

    Attorneys for “Empire” actor Jussie Smollett issued a statement Saturday denying that he orchestrated his Jan. 29 assault, and saying he is “angered” and “devastated” by recent developments in the case. Chicago police want to interview Smollett, after learning new evidence from two Nigerian brothers who were released on Friday night. Local media outlets have [...]

  • Walt Disney Archives Founder Dave Smith

    Walt Disney Archives Founder Dave Smith Dies at 78

    Walt Disney Archives founder Dave Smith, the historian who spent 40 years cataloging and preserving the company’s legacy of entertainment and innovation, died Friday in Burbank, Calif. He was 78. Smith served as Disney’s chief archivist from 1970 to 2010. He was named a Disney Legend in 2007 and served as a consultant to the [...]

  • Colin Kaepernick Kneel

    Colin Kaepernick, Eric Reid Reach Settlement With NFL

    Colin Kaepernick and Eric Reid, two football players who alleged the National Football League colluded to oust them from the game after they started kneeling in protest of racial inequality during the playing of the national anthem, have reached a settlement in the matter, according to a statement from the sports organization and lawyers representing [...]

  • R. Kelly

    R. Kelly Could Be in ‘Big Trouble’ Over Alleged New Sex Tape, Attorney Says

    Strong allegations of sexual misconduct have followed R. Kelly for 25 years, but the singer has always managed to slip free. Yet reports that a videotape of him sexually assaulting an underage girl, combined with the outcry surrounding the Lifetime documentary “Surviving R. Kelly,” means that public sentiment, at the very least, is definitely not [...]

  • Christian Bale as Dick Cheney in

    New Media Residuals and Feature Films Contribute to Spike in Writers' Pay

    The outlook for members of the Writers Guild of America has brightened — even amid pervasive uncertainty in the entertainment industry. According to the most recent report to WGA West members, earnings surged 2.8% to $1.41 billion in 2017, thanks mostly to gains in feature films and new-media residuals. Total covered earnings for WGA West [...]

  • Joe Dante Gremlins

    Hollywood Execs Seek Licensing Deals at the New York Toy Fair

    On Feb. 16 more than 30,000 studio executives, buyers and toy company reps will gather in Manhattan for the annual Toy Fair New York, all vying for market share and trying to snag the latest hot trend in a fast-changing industry. Those working the film side of the business will focus much of their attention [...]

  • Lady Gaga Bradley Cooper A Star

    Universal Music Group Fuels 11.3% Rise in Vivendi's 2018 Revenues

    Vivendi’s revenues were up 11.3% to €13.93 billion ($15.7 billion) in 2018, powered by Universal Music Group, which delivered such hits as the “A Star Is Born” soundtrack and Drake’s new album. UMG’s revenues climbed by 10% to €6 billion ($6.8 billion) compared to 2017. On top of the “A Star Is Born” soundtrack, the [...]

More From Our Brands

Access exclusive content