CONFIDENTIAL PA Proadcasting
For Information
on 13 January 1987
ра
XCCI (87)4
Copy No.
H....
сегу,
blek 306/1
·ECEIVED IN REGIS
2 3 JAN 1987
FICE
A
B
C
D
FA
NOTE FOR EXECUTIVE COUNCIL
PURCHASED OF SHARE CAPITAL OF
HONG KONG TELEVISION BROADCASTS LIMITED
RY BY BOND CORPORATION INTERNATIONAL LIMITED
Laken
mek
Introduction
The
The purpose of this memorandum is to inform members that Bond Corporation International Limited (BCIL) has negotiated the purchase of shares held personally by Sir Run Run Shaw and related trusts. purchase at $14 a share represents about 23.7% of the share capital of Hong Kong Television Broadcasts Limited (HK-TVB). A copy of the press release issued by BCIL, HK-TVB and Shaw Brothers on 11 January 1987 are Annexes A - C.
Background
2
-
at
It
BCIL, a subsidiary of Bond Corporation International Holdings Limited (a Hong Kong company which in turn is a wholly-owned subsidiary of Bond Corporation Holdings Limited, an Australian Public Company), was listed on the Hong Kong Stock Exchange on 5.1.1987. was originally thought that BCIL intended to acquire the whole of the share capital of HK-TVB.
The Administration's interest in what might have been a takeover bid lies in the fact that HK-TVB, whose corporate structure is shown at Annex D, is the parent company controlling Television Broadcasts Limited
Limited (TVB) which holds a licence to broadcast wireless television in Hong Kong. Under the licence, TVB broadcasts one programme service in English and one programme service in Chinese. This licence expires in December 1988. Members may recall that on 8 July 1986, after having considered XCC(86)122, members advised :
a
"that approval in principle should be given (subject to the advice of the TVAB) to extend the licences of
of the existing television companies for term of 12 years expiring in December 2000, but subject to review in 1994, on the basis of such amendments to the Television Ordinance and such other terms and conditions as may be found necessary or appropriate in the light of work now in hand within the Administration.'
CONFIDENTIAL