i-Cable down 21 pc despite white knights ride to rescue with plans for expansion
Friday, April 21, 2017
(SCMP by Alun John and Enoch Yiu) – Consortium led by property tycoon David Chiu proposes HK$1 billion equity injection…
In addition to Chiu, other backers of the consortium include New World Development chairman Henry Cheng Kar-shun, Guangzhou R&F Properties chairman Li Sze-lim, John Zhao Huan, president of private equity firm Hony Capital, and conglomerate Chow Tai Fook Enterprises.
Chiu is the second son of Deacon Chiu Te-ken, who founded ATV, the free-to-air broadcaster that went off the air in May 2016.
Under the agreement, about HK$704 million will come from an open offer to existing shareholders, fully underwritten by Forever Top. A further HK$300 million will come from the conversion of debt due to Wharf into an equity stake in i-Cable.
An open offer allows existing qualifying shareholders to increase their stake in the company.
According to a filing to the Hong Kong stock exchange, five shares will be offered for every three existing shares held by qualifying shareholders at 21 HK cents each.
Following completion of the offer, Forever Top will hold 40 to 54 per cent of i-Cable’s issued share capital, depending on the take-up of the offer by the public shareholders.
“Upon completion of the transaction, Forever Top will use i-Cable as the platform to drive its media business,” Chiu said in the statement.
“Hong Kong has been known as Hollywood of the Orient and I believe television talent, whether back-stage or front-stage, are abundant here. I am hoping that all these talent will be given the chance to bring into play in the most flexible manner of co-operation with i-Cable.”
He also said Forever Top would strive to strengthen the scope of financial news in the region as well.
