RESTRICTED
2)
115131
MDHIAN 0442
RESTRICTED
FM HONG KONG
TO DESKBY 29093OZ FCO
HKB
190/2
RECE
ISTRY
TOP COPY
0
1973
TELNO 1262
OF 290922Z JULY 1993
INDEX
PA
REGISTRY Action Taken
Q DIST?
NEWS CORPORATION/TVB
SUMMARY
THE LATEST POSITION IS NEWS CORPORATION HAS FORMALLY WITHDRAWN ITS BID FOR A MAJOR STAKE IN TVB, THE DOMINANT FREE-TO-AIR TELEVISION STATION IN HONG KONG.
2.
SEPARATELY, NEWS CORPORATION HAS JUST CONCLUDED A DEAL TO TAKE A 63.6 PERCENT SHAREHOLDING IN HUTCHVISION (BVI), THE OWNER OF 48 PERCENT OF THE SHARES OF HUTCHVISION HONG KONG LIMITED, WHICH IS LICENSED TO OPERATE STAR TV (THE LOCALLY-BASED, SATELLITE- DELIVERED, REGIONAL TELEVISION SERVICE). UNDER THE EXISTING LEGAL AND POLICY FRAMEWORK FOR SATELLITE TELEVISION UPLINKED FROM HONG KONG, THERE IS NO OBJECTION FOR THIS SHARE TRANSACTION TO GO THROUGH.
DETAIL
3. AS REGARDS PARA 1, THE SCALE OF THE NEWS CORPORATION'S PROPOSED SHAREHOLDING IN TVB EXCEEDED THE STATUTORY VOTING CONTROL LIMITS IN RESPECT OF FOREIGN OWNERSHIP AND CROSS MEDIA OWNERSHIP OF LOCAL TERRESTRIAL TELEVISION BROADCASTERS. APPROVAL TO WAIVE THESE LIMITS WAS REQUIRED FROM THE BROADCASTING AUTHORITY AND THE GOVERNOR IN COUNCIL RESPECTIVELY. WE UNDERSTAND THESE LEGAL HURDLE CAUSED NEWS CORPORATION TO HAVE SECOND THOUGHTS ABOUT THE PROPOSED ACQUISITION.
4. AS REGARDS PARA 2, OUR ONLY RESTRICTION ON OWNERSHIP OF SATELLITE BROADCASTERS IS THAT NO MORE THAN 49 PERCENT SHOULD BE IN NON-LOCAL HANDS. FOLLOWING THE ACQUISITION, NEWS CORPORATION WILL ASSUME INDIRECT CONTROL OF 48 PERCENT OF THE SHARES OF HUTCHVISION HONG KONG LIMITED, HONG KONG'S SATELLITE UPLINK AND DOWNLINK LICENSEE. THERE IS NOTHING IN THE REGULATORY REGIME GOVERNING SATELLITE TELEVISION BROADCASTING PROHIBITING THE SHARE TRANSACTION.
LINE-TO-TAKE
5. OUR MORE FLEXIBLE ATTITUDE TOWARDS FOREIGN AND CROSS-MEDIA OWNERSHIP OF SATELLITE TELEVISION LICENSEES AS OPPOSED TO LOCAL
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