Television Broadcasts Ltd. (TVB, 00511.HK) is selling a 53 percent stake in its wholly owned Taiwan arm Television Broadcasts Satellite (TVBS) for about HK$1.15 billion (US$150 million), the Hong Kong Economic Journal reported Friday.
The buyer is said to be Taiwanese, with close ties to Cher Wang, the co-founder and chairwoman of smartphone maker HTC Corp.
The deal would eliminate the regulatory risk that TVBS faces because it is controlled by a non-Taiwanese owner.
Wang and related parties are the largest shareholders in TVB, with a 26 percent stake in the TV station, which dominates the Hong Kong market.
TVB will keep the properties and liabilities of TVBS, which will soon be restructured, it said in a stock exchange filing.
The Hong Kong firm will receive HK$391.6 million and provide NT$1.2 billion (US$40 million) in loans to TVBS.
The transaction needs approval from at least four regulators, including Taiwan’s Ministry of Economic Affairs.
TVB said the deal could unlock part of the value of its investment in Taiwan.
Translation by Vey Wong
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