Update | TVB shares soar after major shareholders raise buyback price
TVB shares soar almost 13 per cent to an 18-month high after the broadcaster’s major shareholders raised the per-share buyback price to HK$35.075, from HK$30.50, making it more costly for a counter offer to take over the company
TVB, Hong Kong’s main free-to-air terrestrial broadcaster, soared to an 18-month high after its controlling shareholders raised their buyback offer price to thwart an 11th hour takeover bid by a potentially hostile investor.
Shares of Television Broadcasts Limited, as TVB is also called, surged almost 13 per cent to an intraday high of HK$34.25 on the Hong Kong exchange, the highest since August 20, 2015.
The controlling shareholders of TVB, set up half a century ago by media mogul Sir Run Run Shaw, yesterday raised the per-share buyback price for acquiring stock that they don’t already own to HK$35.075, from a January 24 price of HK$30.50 each. The number of shares to be bought will be reduced to 120 million from 138 million, keeping the total consideration of the offer still at HK$4.21 billion (US$542 million).
TVB said in the filing that the revision was made to ensure that the public would control no less than 25 per cent of the total shares after the buy-back plan.
“The company is concerned over the possibility of the public float requirement under the Listing Rules being breached as a result of the previous offer. Such a concern may materialise in the remote circumstances where all major shareholders elect to retain their shares and not accept the offer, while all other shareholders elect to tender their shares in acceptance of the offer,” the filing said.
The broadcaster -- where stars including Andy Lau, Chow Yun Fatt and Stephen Chow began their careers -- is controlled by a group of shareholders that call themselves the Young Lion Holdings Ltd., with a direct stake of 26 per cent, while Mona Fong, the widow of the late Sir Run Run Shaw, holds a 3.9 per cent stake.
