- Kenneth Hsu Kin to buy a 56.5 per cent stake in Young Lion, which controls a 26 per cent stake in free-to-air broadcaster TVB, from Charles Chan
- Shareholding changes come after TVB restructures operations to counter falling revenue
A relatively unknown buyer will own a substantial stake in Television Broadcasts Ltd (TVB), Hong Kong's dominant free-to-air broadcaster.
Kenneth Hsu Kin has acquired a controlling stake in an entity which is majority-owned by Charles Chan Kwok-Keung, the chairman of TVB, who soon plans to retire after five years in the role amid concerns about its outlook.
Hsu disclosed in a filing to the Hong Kong stock exchange on Friday that he has bought a 56.5 per cent stake in Young Lion Holdings, the parent company of Shaw Brothers, which in turn owns 26 per cent of TVB.
Not much is known about Hsu though. However, according to local Chinese newspapers, Hsu has a background in engineering.
The transaction is now subject to approval by the Communications Authority.
Earlier this week, TVB said that Chan, 64, had signed a conditional agreement to sell his interest in Young Lion Holdings, the single largest owner of TVB, as part of a proposed reorganisation of interests among Young Lion's shareholders.
TVB chairman plans to sell stake in broadcaster, step down from board next month
The other main shareholders of Young Lion are vice-chairman Li Ruigang, the founder of China Media Capital, one of mainland China's most influential media and entertainment investor, and Wang Hsiueh Hong, the chairwoman of Taiwanese company HTC.
Chan's decision to step down follows a restructuring at TVB last month, when it announced plans to lay off 350 employees, or 10 per cent of its workforce, to cope with weaker business conditions.
TVB said in a memo last month that it took the steps to improve efficiency. It has lost advertisers after online calls to boycott the TV station for its pro-Beijing bias in the coverage of the city's extradition bill protests. The company has denied those allegations.
Chan will not own any shares in the company after the Young Lion transaction, TVB said in a filing earlier this week. He will retire and resign as chairman and non-executive director of the board with effect from February 4, it added.
Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.