Legendary Pictures plans to purchase a 29.9% stake in TVB, conditions including repurchase rejected

Recently, Legendary Pictures and Entertainment Group announced that the company had issued a preliminary letter to Hong Kong Television Broadcasting (TVB) on February 7 and was conducting formal discussions on a possible voluntary conditional cash partial offer to acquire 29.9% of TVB's share capital.

Original title: Legendary Pictures plans to acquire nearly 30% of TVB in Hong Kong or become the largest single shareholder

Legendary Pictures and Entertainment Group announced on February 8 that the company had issued a preliminary letter to Hong Kong Television Broadcasting (TVB) on February 7. Formal discussions are under way on the possibility of making a voluntary conditional cash partial offer to acquire 29.9% of TVB's share capital.

It is reported that TVB announced a share repurchase plan with a total amount of approximately HK$4.2 billion on January 24. Its major shareholder wanted to increase its shares, but it attracted dissatisfaction from investors, so that the final result of the repurchase plan is not yet clear.

Subsequently, on February 8, TVB issued an announcement stating that Legendary Pictures and Entertainment Group Co., Ltd. had sent a letter to the company on the same day to inform the company's board of directors that it was discussing the possibility of making a voluntary conditional cash partial offer with the company to acquire 29.9% of the issued shares in TVB's share capital for formal discussions.

However, the reporter learned that the prerequisite for Legendary Pictures and Entertainment Group to acquire a 29.9% stake in TVB and become a controlling shareholder would be that the previous repurchase plan was rejected.

Because the announcement issued by TVB mentioned that the proposed offer must be met with certain conditions, including TVB announced on January 24 that Merrill Lynch (Asia Pacific) Limited proposed on its behalf to repurchase up to 138 million shares of the company's shares at HK$30.50 per share and the application for a washing exemption were voted down by the company's relevant shareholders, and Legendary Pictures and Entertainment Group's offer to acquire the company's shares was approved or not opposed by the Hong Kong Communications Authority.

Legendary Pictures and Entertainment Group said that they expect to issue an announcement to disclose the proposed offer as required within the week starting February 20.

Some analysts pointed out that once this tender offer is implemented, Legendary Pictures and Entertainment Group will likely become TVB's largest single shareholder, surpassing the 26% of Young Lion's total shareholding held by Li Ruigang, Chen Guoqiang and HTC founder Wang Xuehong.

However, the analysis also believes that since Legend Group may not be familiar with the operation of the Hong Kong TV market, its operating prospects after the acquisition of TVB are unclear. It may put pressure on TVB's share price.

The reporter learned that TVB had previously suspended trading at HK$29.65, but resumed share trading on February 9, with an opening price of HK$31.10, which remained at HK$31.10 as of press time.

Editor: Nancy