Shaw Brothers 0080

[winston]

Trying to get a position. Their land is in a prime area..

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No deal on Shaw stake

Shaw Brothers (0080) confirmed that the controlling shareholder in the company, Shaw Holdings, has been in discussions with interested parties regarding a possible sale of its stake in the company.

"No agreement has been made and the company is not aware of any other information or new development," its statement to the local bourse said.

STAFF REPORTER

[winston]

Not vested.

Shaw Bros offloads Sai Kung farm land
BenjaminScent

Shaw Brothers (0080), the holding company of media tycoon Run Run Shaw, said it will sell 123,031 square feet of farm land in Sai Kung to Shaw's wife, Mona Fong Yat-wa, for HK$25.2 million.

The business structure of Shaw Brothers will be clearer after the land disposal, a market watcher said. The sale could make it easier for Guangdong property mogul Yeung Kwok-keung to complete his takeover of Shaw Brothers, the largest shareholder in Television Broadcasts Ltd (0511).

The agricultural lands are located in Demarcation District 229 of Tai Po Tsai Village, on Clear Water Bay Road in Sai Kung. The land was previously used for props as part of Shaw Brothers film productions.

Fong, who is deputy chairwoman and managing director of Shaw Brothers, agreed to pay a deposit of HK$2.5 million in cash yesterday and will pay the balance of HK$22.7 million in cash on completion of the deal.

Shaw Brothers said it expects to book a gain of HK$9.4 million on the sale.

As Shaw Brothers is subject to a possible takeover offer, the land sale will require approval by independent shareholders.

[winston]

Not vested.

In March, Dr Check recommended Shaw Brothers (0080), which was trading at HK$15 at the time. It rose to HK$24 in June on the possibility that it would be acquired by Guangdong tycoon Yeung Kwok- keung. Yesterday, it fell to HK$16.02 before closing at HK$17.30.

Yeung said in June that he had secured a HK$7 billion syndicated loan from banks. Judging from the share price performance, perhaps some investors believe that it may not be easy for this loan to be finalized. My advice is to wait for a dip below HK$15 if you want to buy again.

[winston]

Not vested.

Shaw Bros scraps land sale to Fong
BenjaminScent

Shaw Brothers (0080), the holding company of media tycoon Run Run Shaw, has scrapped a HK$25.2 million deal to sell 123,031 square feet of Sai Kung farm land to Shaw's wife, Mona Fong Yat- wa.

Fong, who is deputy chairwoman and managing director of Shaw Brothers, will be refunded her HK$2.5 million deposit within seven days without interest or penalty, the company said in a stock exchange announcement.

An independent financial adviser gave its recommendation for the disposal, but the Securities and Futures Commission did not accept it, Shaw Brothers chief financial officer Jerry Rajakulendran told The Standard.

Since Shaw Brothers is subject to a possible takeover offer from Guangdong property mogul Yeung Kwok-keung, chairman of Country Garden (2007), the Takeovers Code required Shaw Brothers to receive consent for the land disposal from the executive director of the SFC's corporate finance division. "We didn't get the consent from the SFC," Rajakulendran said. "They think that we shouldn't do it at this time."

The SFC wants Shaw Brothers to wait until there is some conclusion on the possible takeover offer before the company thinks of selling any assets, particularly to connected parties, Rajakulendran explained.

An investment bank analyst said it is "quite curious" that the farm land disposal, announced on August 13, had to be called off only 20 days later. "I don't understand why the SFC sunk the deal so quickly," the analyst said. "There are too many puzzles."

He added: "We need some explanation from the company. The company didn't explain these mysteries."

A spokeswoman for the SFC declined to comment on individual cases.

Shaw Brothers is the single largest shareholder of Television Broadcasts Ltd (0511), with a 26 percent stake.

Shares of Shaw Brothers dropped 5.5 percent or 92 HK cents yesterday to close at HK$15.80, extending Monday's 1.9 percent slide. The stock has lost more than 24 percent of its value since news of Yeung's approach emerged in May.

[winston]

Lee wears losses on Yeung
Alfred Liu

Henderson Land (0012) chairman Lee Shau-kee says he will not withdraw support for Country Garden (2007) chairman Yeung Kwok- keung's bid to acquire Television Broadcasts (0511), despite losing money on his investment in Yeung's company.

Yeung is aiming to take over TVB's holding company Shaw Brothers (0080).

"I've lost hundreds of millions on the stock [Country Garden]. I won't raise my shareholding in the company even though I still keep them. I am full already," Lee said.

"I will not withdraw and will still lend him HK$3 billion if he keeps his plan to acquire the TV station," Lee added. "But I really don't know the process now. Maybe he has no mood to proceed with the acquisition plan as shares in his company have plunged so far."

Guangdong property developer Country Garden closed down 3.24 percent yesterday at a record low of HK$3.29. The stock has slid 38.8 percent from its offer price of HK$5.38 and 76.8 percent from HK$14.18, its highest ever intraday price since the shares' trading debut last year.

"Country Garden should not have dropped that much as the company is not doing that bad," Lee said. Lee will have suffered a paper loss of HK$388 million on Country Garden, assuming he has not offloaded his shares, as he bought about 186 million shares for HK$1 billion when it listed.

[winston]

Shaw sale awaits `suitable' party
AlfredLiu

Shaw Brothers (0080), the holding company controlled by media tycoon Run Run Shaw, said it would be sold when a "suitable" party comes along.

"Some interested parties are approaching us," deputy chairwoman and managing director Mona Fong Yat-wa said yesterday.

"Any parties which understand the industry and are interested in the deal can talk to us. However, the company is not working on the takeover offer deliberately."

Run Run Shaw controls 75 percent of Shaw Brothers, which is the single largest shareholder in TVB with a 26 percent stake.

Asked the number of potential buyers after Country Garden (2007) chairman Yeung Kwok- keung, Fong would only say that "more than one party" are in talks with Shaw Brothers. "No agreements have been reached yet."

She declined to name any potential buyer. Previously rumored suitors have included PCCW (0008) chairman Richard Li Tzar-kai, Chinese Estates (0127) chairman Joseph Lau Luen-hung, Chevalier International (0025) chairman Chow Yei- ching and US private-equity firm Blackstone.

Asked whether Run Run Shaw would lend money to Yeung for his proposed acquisition, Fong dismissed that as media speculation.

Shaw Brothers confirmed it has scrapped a HK$25.2 million deal to sell 123,031 square feet of Sai Kung farmland to Fong, Shaw's wife.

"We announced the deal during the offer period [for the sale of Shaw Brothers]. The [Securities and Futures Commission] realized that any transactions would be sensitive during the offer period," she said.

[winston]

Not vested. From Dr. Check:-

After trading ended, Shaw Brothers (0080) said its controlling shareholder has been in talks on the possible sale of its stake. Last time there was talk of a sale, Shaw's share price soared from HK$15 to HK$24. Then it fell sharply when the prospective buyer Yeung Kwok-keung, chairman of Country Garden (2007), wasn't able to get loan support from banks.

Shaw shares tumbled to HK$9.69 last Thursday before rising to HK$11.68 yesterday. A sale is likely to happen but it will take time as it is a sensitive issue because of Shaw Brothers' stake in TVB (0511).

However, talk of a sale creates volatility in short-term trading. Dr Check does not recommend buying if Shaw shares open sharply higher today, say above HK$17.

[winston]

Run Run Shaw May Offer to Buy Out Family Film Company By Mark Lee

Dec. 15 (Bloomberg) -- Run Run Shaw, the 101-year-old film mogul who helped fund “Blade Runner,” may offer to buy out Shaw Brothers (Hong Kong) Ltd. after failing to sell his stake in the studio.

An announcement will be made on “a possible privatization of the company by the controlling shareholder,” Shaw Brothers said in a statement today. The stock was suspended.

The plan by Sir Run Run, who started making movies in 1920s Shanghai and won a Cannes award for “The Magnificent Concubine,” follows the stock’s 65 percent drop from a record in June after he ended talks to sell his holding amid the global recession. Shaw Brothers is the biggest investor in Television Broadcasts Ltd., Hong Kong’s dominant TV station operator.

“Hong Kong media companies will face a difficult operating environment as the recession hits,” said Linus Yip, a strategist at First Shanghai Securities in Hong Kong. “Assuming the privatization offer provides a decent premium, some Shaw Brothers investors may be inclined to cash out.”

Shaw Brothers, which rose 0.5 percent to HK$8.13 in Hong Kong trading on Dec. 12, has fallen from the HK$23.50 peak on June 26. The stock was boosted in June by reports that the chairman planned to sell his stake to Country Gardens Holdings Co. Chairman Yeung Kwok Keung.

Sir Run Run, who is also chairman of Television Broadcasts, controls 75 percent of Shaw Brothers. The film company has a market capitalization of HK$3.24 billion ($418 million), based on the Dec. 12 share price.

Global Recession

In October, Shaw Brothers said talks by Sir Run Run to sell his stake in the company ended because of the global recession.

Television Broadcasts shares rose 1.5 percent to HK$24.05 in Hong Kong trading as of 3:05 p.m. local time, compared with a 2.9 percent gain by the city’s benchmark Hang Seng Index. Shaw Brothers owns a 26 percent stake in the TV company.

Sir Run Run, whose movie career spans about 80 years, has made more than 1,000 films, starting in 1920s Shanghai, near his birthplace Ningbo.

By the 1960s, Shaw Brothers (Hong Kong) Ltd. was Asia’s biggest producer of movies, including “The Magnificent Concubine,” which took the Grand Prix at the 1962 Cannes Film Festival. The studio’s decline a decade later coincided with the failure to sign Bruce Lee in 1970 -- Shaw then focused his efforts on TV. In 1977, he was knighted by Queen Elizabeth II.

Shaw Brothers leased most of its filmmaking facilities to TVB in 1983, after Shaw became chairman of the TV company in 1980. He built TVB into a company with distribution in more than 30 markets including the U.S., Canada and Taiwan, making it the world’s largest producer of Chinese-language programs, according to its Web site.

Television Broadcasts had 73 percent of Hong Kong’s TV advertising market last year, almost four times more than Asia Television Ltd.’s 19 percent, according to researcher Media Partners Asia.

Television Broadcasts last month named 74-year-old Mona Fong, wife of Sir Run Run and chief executive officer at Shaw Brothers, as managing director. Fong, a former singer, married Sir Run Run in 1997, 10 years after his first wife, Lily, died.

[winston]

Shaw may offer high premium to take firm private
BenjaminScent

Centenarian media mogul Run Run Shaw may privatize holding company Shaw Brothers (0080), the firm said yesterday, in a move that could make it easier for it to sell off its stake in Television Broadcasts Ltd (0511).
Chairman Shaw may need to spend up to HK$1.5 billion, or HK$15 per share, to buy the 25 percent of Shaw Brothers he does not already own, according to market watchers.

They said shareholders may be offered a premium of up to 85 percent to the stock's last closing price of HK$8.13 to get them to accept the deal.

Trading in Shaw Brothers was suspended yesterday pending the release of an announcement about a possible privatization by the controlling shareholder. The firm's main asset is its 26 percent stake in TVB, making it the broadcaster's largest shareholder.

Shaw Brothers currently has market capitalization of HK$3.24 billion, and its TVB stake is worth HK$2.73 billion.

Run Run Shaw will need to offer between HK$10 and HK$15 a share to Shaw Brothers shareholders, a premium of 23 to 85 percent, to show his privatization bid is serious, First Shanghai Securities Linus Yip Sheung-chi said.

An offer below HK$10 a share would show that Shaw just wants to stabilize the stock price by signaling to the market he thinks it is undervalued, Yip said.

The stock hit a peak of HK$23.50 in June, when Shaw was trying to sell his stake to Guangdong property magnate Yeung Kwok-keung. The shares have since lost 65.4 percent of their value.

"Shaw Brothers is not a stock that is actively traded usually," Ample Finance Group director Alex Wong Kwok-ying said.

"In this kind of market situation, I think they need to pay a very high premium to attract those long-term investors to give up their shares."

For small shareholders to accept the deal, Run Run Shaw will need to offer at least HK$10.98 per share - or twice the firm's unaudited net asset value of HK$5.49 per share as at September 30, said Redford Securities head of research Kenny Tang Sing-hing.