Mingly may take stake in ATV
Company could become top shareholder
ATV and some of the companys shareholders have entered into conditional agreements with Mingly Corp., which could become a top shareholder, according to a press release. Local reports say that Mingly will obtain a 50% stake and that deal will involve a HK2billion transaction ($256 million), valuing the group at over $500 million.
Mingly, which is family controlled with Payson Cha as chairman, is supported by media venture Soft-trek Corp. and ABN AMRO, the financing partner for the transaction.
Mingly is the investment holding company of the Cha Group, which spans real-estate, textile and financial services sectors, among others. Soft-trek is a producer of TV drama and has artist management interests that span Hong Kong, Beijing and Shanghai. Its boss Louis Page, who previously ran Hong Kong's leading broadcaster Television Broadcasts Ltd. (TVB), is expected to have a major role if the bid succeeds.
The deal still needs to be given the green light by the Broadcasting Authority of Hong Kong. Applications have been made to the authority and related government departments for the ownership change, according to a press release. Company is expected to make a case arguing that it needs new coin to finance its conversion into a modern digital broadcaster.
ATV is a privately held company, but new investors may accelerate company's plans to float it on the stock market.
