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OPERATIONS. THIS COULD BE ARRANGED THROUGH THE CONSORTIUM REPRESENT-
ATIVE HERE. SUBJECT TO YOUR ADVICE, THE TEAM WOULD CALL ON THE
APPROPRIATE MINISTER AND STATE BROADCASTING AUTHORITY.
TEXT OF REDIFFUSION ANNOUNCEMENT AS FOLLOWS:
''SUBJECT TO THE NECESSARY APPROVAL OF THE GOVERNMENT OF HONG
KONG AND OTHER AUTHORITIES, REDIFFUSION HAS AGREED TO SELL TO A CONSORTIUM OF THREE PROMINENT AUSTRALIAN COMPANIES A CONTROLLING INTEREST IN REDIFFUSION TELEVISION LIMITED OF HONG KONG (''RTV''). IT HAS ALSO AGREED TO SELL TO THE CONSORTIUM THE STUDIO AND
OFFICE BUILDING WHICH REDIFFUSION LEASES TO RTV.
THE COMPANIES WHICH COMPRISE THE CONSORTIUM ARE DAVID SYME AND CO
LIMITED, HENRY JONES (IXL) LIMITED AND C.R.A. LIMITED.
THE TOTAL CONSIDERATION WILL BE APPROXIMATELY HKDLR 120 MILLION
(ABOUT PND STG 9.7 MILLION) IN CASH, WHICH IS MORE THAN
SUFFICIENT TO REPAY LOCAL BANK BORROWINGS. APPROXIMATELY HKDLR BØ
MILLION OF THE TOTAL CONSIDERATION IS FOR THE BUILDING.
RTV OPERATES, UNDER GOVERNMENT LICENCE, A COMMERCIAL TELEVISION STATION IN HONG KONG WHICH HAS YET TO REACH PROFITABILITY.
AFTER COMPLETION OF THE TRANSACTION THE ISSUED SHARE CAPITAL OF
RTV WILL BE HELD AS TO 61.2 PERCENT BY THE CONSORTIUM, 19.9 PERCENT BY REDIFFUSION AND 18.9 PERCENT BY EXISTING HONG KONG
SHAREHOLDERS. REDIFFUSION WILL NOT BE UNDER ANY OBLIGATION TO
PROVIDE FURTHER FINANCIAL SUPPORT FOR RTV. THE LOSSES OF RTV HAVE
ALREADY BEEN WRITTEN OFF IN THE REDIFFUSION GROUP ACCOUNTS AS
THEY AROSE, AND THERE WILL BE A NET ADDITION TO RESERVES RESULTING
FROM THE TRANSACTION.
THE TRANSACTION HAS THE SUPPORT OF THE HONG KONG BOARD OF RTV
AND ITS CHAIRMAN, SIR SIDNEY GORDON. THE CONSORTIUM HAS INDICATED
THAT IT WOULD LIKE THE CHAIRMAN, THE LOCAL DIRECTORS AND THE MANAGING DIRECTOR, MR. STEVE HUANG, TO CONTINUE''.
MACLEHOSE
MINIMAL
[THIS TELEGRAM WAS NOT ADVANCED]
HK & GD SPD
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