TNAG-2769-FCO40-3986-Hong-Kong-and-the-media-interviews--press-briefings-and-the--1994 — Page 233

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 1470

OF 15030OZ SEPTEMBER 93

INFO PRIORITY PEKING

CONFIDENTIAL

HUB 301/1

2 SEP 1993

پھر

Mecha (164)

051114

MDLIAN 7224

TOP COPY Q DIST?

OUR TELNO 1422.

THE SOUTH CHINA MORNING POST AND THE WAH KIU YAT PO.

SUMMARY.

1.

NEWS CORPORATION HAS AGREED TO SELL 34.9 PERCENT OF THE SHARES OF SCMP HOLDINGS TO KERRY MEDIA FOR US DOLLARS 349 MILLION. THE DEAL IS DEPENDENT UPON CONFIRMATION FROM THE SECURITIES AND FUTURES COMMISSION THAT KERRY GROUP WILL NOT BE OBLIGED TO MAKE A GENERAL OFFER FOR THE SHARES OF SCMP HOLDINGS. THERE IS WIDESPREAD CONCERN HERE ABOUT THE IMPLICATIONS FOR THE SCMP'S TRADITIONAL EDITORIAL INDEPENDENCE.

DETAIL.

2. THE SHARES OF SCMP HOLDINGS, WHICH OWNS THE SOUTH CHINA

MORNING POST AND THE WAH KIU YAT PO, WERE SUSPENDED FROM TRADING ON 3 SEPTEMBER WHILE NEGOTIATIONS TOOK PLACE FOR THE SALE OF NEWS CORPORATION'S 51 PERCENT STAKE TO ROBERT KUOK'S KERRY MEDIA. THE PARTIES MADE A JOINT ANNOUNCEMENT ON 13 SEPTEMBER SAYING THAT KERRY MEDIA HAS AGREED TO PAY US DOLLARS 349 MILLION FOR 34.9 PERCENT OF THE SHARES OF SCMP HOLDINGS. NEWS CORPORATION WILL RETAIN A 15.1 PERCENT HOLDING FOR THE PRESENT. THE DEAL IS SUBJECT TO CONFIRMATION FROM THE SECURITIES AND FUTURES COMMISSION THAT KERRY MEDIA WILL NOT BE OBLIGED TO MAKE A GENERAL OFFER FOR THE SHARES OF SCMP HOLDINGS.

3.

THE TRIGGER POINT FOR A GENERAL OFFER IS 35 PERCENT OF THE SHARES OF A LISTED COMPANY; HENCE THE AGREEMENT TO SELL 34.9 PERCENT. IT IS GENERALLY ASSUMED THAT NEWS CORPORATION WILL SELL ITS REMAINING HOLDING EITHER GRADUALLY IN THE MARKET OR, AFTER A DECENT INTERVAL, TO ONE OF THE OTHER MINORITY SHAREHOLDERS.

KERRY MEDIA HAS ANNOUNCED THAT ROBERT KUOK WILL BECOME THE NEW CHAIRMAN OF SCMP HOLDINGS AND THAT HIS DEPUTY IS TO BE ROBERTO

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