This decision has been verbally conveyed to TVB and was included in the Attorney General's statement in the Legislative Council and the press release issued November 1986.
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Trading in the BCIL, HK-TVB and Shaw Brothers has been voluntarily suspended by the companies since 8 January 1987 and is expected to resume on 13 January 1987. The situation was very fluid with no other concrete information available on the purchase until 11 January 1987. However, it is understood that the Board of Directors of both HK-TVB and Shaw Brothers met January 1987 to consider Bond's offer.
The Acquisition
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The acquisition involves the purchase at $14 per share of 23.77% of the share capital of HK-TVB held by Sir Run Run Shaw and his related trusts. It is a cash purchase costing a total of $1,397,718,952. The acquisition is being financed by way of a short term bank loan, which is intended will be refinanced by a rights issue made to the shareholders of BCIL in the near future. The rights issue will be underwritten as to 50 per cent by BCIL and as to 50 per cent by Wardley Limited and Jardine Fleming (Securities Limited). The acquisition includes the appointment of Alan Bond and another representative of BCIL as non-executive directors of HK-TVB. It is understood that there are no proposals for changes in the management of HK-TVB. The purchase of the shares from Sir Run Run Shaw and his related trusts constitutes a notifiable transaction under the Securities Ordinance but the exact amount of BCIL' S or its related companies holdings in HK-TVB shares is not yet known. Moreover, as a result of this acquisition, it will be the Administration's intention
intention to find out the total number of voting shares now in the possession of persons or companies ordinarily resident in Hong Kong in order to ascertain whether the provisions of section 11(1)(b) of the Television Ordinance are satisfied. It is therefore not clear at this stage whether these and other provisions of the Television Ordinance are affected.
The Bond Group
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Information contained in the 1985 Bond Corporation Report indicates that the Bond Group of companies' investments include television stations in Perth and Brisbane Channel 9: Perth, and Channel 9 : Brisbane. The Bond Group has also investments in three radio stations Station 8DN in Darwin; Station 6NW in Port Hedland and Station 6KA in Karratha serving the